Hello,

I need help with this question and I would appreciate if it would be possible to provide details on how to answer/solve each question.

Thank you

Capital Budgeting Decisions Learning Obiectives Understand how to use EXCEL Spreadsheet (a) Develop proforma Income Statement Using Excel Spreadsheet (b) Compute Net Project Cashflows, NPV, and IRR (c) Develop problem-solving and critical thinking skills and make long-term investment decisions 1) Life Period of the Equipment 4 years 2) New equipment cost 3) Equipment ship & install cost $ (35,000) 10) Operating cost (60% of Sales) $ 4) Related start up cost 5) Inventory increase 6) Accounts Payable increase 7) Equip. salvage value before tax $ 15,000 13) Cost of Capital (Discount Rate) 8) Sales for first year (1) S 200,000 $(200,000) 9) Sales increase per year 5% (120,000) -60% (60,000) 21% 10% S (5,000) (as a percent of sales in Year 1) S 25,000 11) Depreciation (Straight Line/YR S 5,000 12) Marginal Corporate Tax Rate (T ESTIMATING Initial Outlay (Cash Flow, CFo, T-o) CFO CF1 CF2 CF3 CF4 Year Investments 1) Equipment cost 2) Shipping and Install cost 3) Start up expenses Total Basis Cost (1+2+3) 4) Net Working Capital Total Initial Outlay Operations: Revenue Operating Cost Depreciation EBIT Taxes Net Income Add back Depreciation Total Operating Cash Flow erminal 1) Change in net WC 2) Salvage value (aftertax Salvage Value Before Tax (1-T)XXXXX $$$- $20,000 Total Project Net Cash Flows $$$$ NPV- IRR Payback