Question: Hello, I really need help with the two blank discount factors. I must use the PV formula in excel or else it wont work. I

Hello,
Hello, I really need help with the two blank discount factors. I
must use the PV formula in excel or else it wont work.
I provided what the =pv formula needs. Thank you! Formatting * Table
I really need help with the two blank discount factors. I must use the PV formula in excel or else it wont work. I provided what the =pv formula needs.
Thank you!

Formatting * Table * N.mber sple Laurman, Inc. is considering the following project: Required investment in equipment Project life Salvage value $2,205,000 7 225,000 66 The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin \begin{tabular}{rr|} \hline$2,750,000 \\ 1,600,000 \\ \hline$1,150,000 \\ \hline & \\ \hline$780,000 \\ \hline \end{tabular} Company discount rate 18% Required: (Use cells A to C18 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values.) 1. Compute the annual net cash inflow from the project. $630,000 2. Complete the table to compute the net present value of the investment. Graded Worksheet + Calculation Made Aunomatic Wodbook Slatisios 37 38 Use Excel's PV function to compute the present value of the future cash fiows $2,471,895,52 39 Deduct the cost of the investment 40 Net present value 41 3. Use Excel's RATE function to compute the project's internal rate of return 22.04K 4. Compute the project's payback period. 3.5 years 5. Compute the project's simple rate of return. 12.70% 47 48 59 Calculation Mode. Astamatic Wailios 205,000.00205,000.00) 471,895.52 205,000.00) $266,895.52 PV(rate, nper, pmt, [fv]) [type]) 22.04% 3.5 years 12.70% Formatting * Table * N.mber sple Laurman, Inc. is considering the following project: Required investment in equipment Project life Salvage value $2,205,000 7 225,000 66 The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin \begin{tabular}{rr|} \hline$2,750,000 \\ 1,600,000 \\ \hline$1,150,000 \\ \hline & \\ \hline$780,000 \\ \hline \end{tabular} Company discount rate 18% Required: (Use cells A to C18 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values.) 1. Compute the annual net cash inflow from the project. $630,000 2. Complete the table to compute the net present value of the investment. Graded Worksheet + Calculation Made Aunomatic Wodbook Slatisios 37 38 Use Excel's PV function to compute the present value of the future cash fiows $2,471,895,52 39 Deduct the cost of the investment 40 Net present value 41 3. Use Excel's RATE function to compute the project's internal rate of return 22.04K 4. Compute the project's payback period. 3.5 years 5. Compute the project's simple rate of return. 12.70% 47 48 59 Calculation Mode. Astamatic Wailios 205,000.00205,000.00) 471,895.52 205,000.00) $266,895.52 PV(rate, nper, pmt, [fv]) [type]) 22.04% 3.5 years 12.70%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!