Question: help! Required information Excel Analytics 14-1 (Static) Internal Rate of Return [LO14-2, LO14-3] Stauffer Company has an opportunity to manufacture and sell a new product
![LO14-3] Stauffer Company has an opportunity to manufacture and sell a new](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/671823f4aa9e9_316671823f41a39c.jpg)

Required information Excel Analytics 14-1 (Static) Internal Rate of Return [LO14-2, LO14-3] Stauffer Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs and revenues for the new product: Annual revenues and costs: When the project concludes in five years the working capital will be released for investment elsewhere in the company. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on Goal Seek in Excel. A B C D E H Blue cells can be modified \begin{tabular}{|l|l|} \hline Discount rate & 0.0% \\ \hline \end{tabular} 2. Refer to the Excel template. a. Why does cell B7 have an $80,000 cash outflow, whereas cell G10 shows the same $80,000 as a cash inflow? b. Will the value of 1.000 that is shown in cell B15 stay constant or change as the Excel template is used to calculate the internal rate of return? Why? c. Will the values of 1.000 that are shown in cells C15 through G15 stay constant or change as the Excel template is used to caiculate the internal rate of return? Why? d. Will the discount factors in cells C15 through G15 increase or decrease as the discount rate in cell B3 increases? Why? e. Once the discount rate in cell B3 is changed to some percentage greater than zero, will the amount shown in cell C16 always be greater than or less than the amount shown in cell F16? Why? f. Would it be correct to conclude that this project has a net present value of $310,000 given that this is the amount currently shown in cell B17? Why? 9. Once this template has been used to calculate the internal rate of return, what dollar amount will appear in cell B17? Complete this question by entering your answers in the tabs below. 2a. Why does cell B7 have an $80,000 cash outflow, whereas cell G10 shows the same $80,000 as a cash inflow? Because we aWays assume the same amount of working capital released at the beginning of the project will be reinvested in the same project at the end of its life. Because we always assume the same amount of working capital invested at the beginning of the project will be released at the
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
