Question: How would I solve this in excel? An office is looking to install a new IT system. The new system would cost $12,000 in hardware,
How would I solve this in excel?
An office is looking to install a new IT system. The new system would cost $12,000 in hardware, plus $3,000 in software, and $1,000 in training The office will have to take out a $12,000 long-term loan at 5.0% interest annually to pay for it. The average tax rate is 25% The new system should provide an additional $2400 in sales annually, and an additional costs of goods sold of $840 and SGA of $600. As a result of the new sales, the company forecasts current assets to increase by $240 and current liabilities to increase by $80. The system is expected to last 10 years, straight-line depreciated, at $1,600 in new annual depreciation. After 5 years, the office will need to upgrade. At the start of the 6th year, after 5 full years of depreciation, the hardware should be able to be resold for around $2,500. Calculate the start up, annual incremental, and shut down cash flows associated with this project An office is looking to install a new IT system. The new system would cost $12,000 in hardware, plus $3,000 in software, and $1,000 in training The office will have to take out a $12,000 long-term loan at 5.0% interest annually to pay for it. The average tax rate is 25% The new system should provide an additional $2400 in sales annually, and an additional costs of goods sold of $840 and SGA of $600. As a result of the new sales, the company forecasts current assets to increase by $240 and current liabilities to increase by $80. The system is expected to last 10 years, straight-line depreciated, at $1,600 in new annual depreciation. After 5 years, the office will need to upgrade. At the start of the 6th year, after 5 full years of depreciation, the hardware should be able to be resold for around $2,500. Calculate the start up, annual incremental, and shut down cash flows associated with this project
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