Question: Hello, Can You Please Help Me with this question? If you could show me your formulas in excel so I know how you got your

Hello, Can You Please Help Me with this question? If you could show me your formulas in excel so I know how you got your answer that would be really helpful. I will make sure to give you a thumbs up.

Hello, Can You Please Help Me with this question? If you couldshow me your formulas in excel so I know how you gotyour answer that would be really helpful. I will make sure to

You work for a consulting firm and have been asked by a client--InvestEd--to evaluate two project proposals. Your task is to develop a spreadsheet system for the proposals to calculate the project cash flows (free cash flows), calculate the criteria for evaluating the proposed projects, and graph the NPV profile for each project so the company can see the range of rates in which each project is worth. Finally, based on the information in the proposals, you need to advise InvestEd on which proposal they should select and explain why they should select it. 2. Erie Eablizes The other project is an eablize production facility near Erie, PA. In deciding whether to proceed with the project, the InvestEd has gathered the following information: The estimated up-front cost of constructing the facility at t = 0 is $10 million. For tax and accounting purposes, these costs will be depreciated using a MACRS five (5) year schedule. The company will operate the facility for 4 years. It estimates today that the facility can be sold at the end of the project's life for $2.2 million. If the facility is opened, InvestEd will have to increase its inventory by $3.0 million at t = 0. In addition, its accounts payable will increase by $1.6 million at t = 0. The new facility will increase the company's yearly sales by $7.8 million. The annual operating costs (excluding depreciation) of the new facility are expected to equal 58% of annual revenues. The InvestEd's tax rate is 25%. The project's cost of capital is 10.5%. Five-Year MACRS depreciation schedule Year Depr 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% You work for a consulting firm and have been asked by a client--InvestEd--to evaluate two project proposals. Your task is to develop a spreadsheet system for the proposals to calculate the project cash flows (free cash flows), calculate the criteria for evaluating the proposed projects, and graph the NPV profile for each project so the company can see the range of rates in which each project is worth. Finally, based on the information in the proposals, you need to advise InvestEd on which proposal they should select and explain why they should select it. 2. Erie Eablizes The other project is an eablize production facility near Erie, PA. In deciding whether to proceed with the project, the InvestEd has gathered the following information: The estimated up-front cost of constructing the facility at t = 0 is $10 million. For tax and accounting purposes, these costs will be depreciated using a MACRS five (5) year schedule. The company will operate the facility for 4 years. It estimates today that the facility can be sold at the end of the project's life for $2.2 million. If the facility is opened, InvestEd will have to increase its inventory by $3.0 million at t = 0. In addition, its accounts payable will increase by $1.6 million at t = 0. The new facility will increase the company's yearly sales by $7.8 million. The annual operating costs (excluding depreciation) of the new facility are expected to equal 58% of annual revenues. The InvestEd's tax rate is 25%. The project's cost of capital is 10.5%. Five-Year MACRS depreciation schedule Year Depr 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%

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