Question: i beed help solving jt through excel... i need the formulas * I need help solving it through Excel... I need the formulas Question 8:

i beed help solving jt through excel... i need the formulas
i beed help solving jt through excel... i need the formulas *
I need help solving it through Excel... I need the formulas Question
* I need help solving it through Excel... I need the formulas

Question 8: Investment Return Analysis Please review the spreadsheet calculations: Dunlop Copies would like to buy a high-volume copier. The machine costs $100,000 and will be depreciated straight-line over 5 years to a salvage value of $20,000. Dunlop anticipates that the machine can be sold in 5 years for $30,000. The machine will save $20,000 a year in labor costs but will require an increase in working capital, mainly paper supplies, of $10,000. The firm's tax rate is 35%, and the discount rate is 8%. What is the NPV, IRR, Profitability Index and Payback for this investment? Should Dunlop buy the copier? Why? Year 0 1 2 3 4 5 5 Investment Working Capital $ (100,000) $ (10,000) $ 10,000 Labor Cost Saving $ 13,000 $ 13,000 $13,000 $ 13,000 $13,000 Depreciation $ 5,600 $ 5,600 $ 5,600 $ 5,600 $ 5,600 Disposal Year 5 $ 26,500 Project Cash Flows $ (110,000) $ 18,600 $ 18,600 $ 18,600 $ 18,600 $ 55,100 Discounted Cash Flow $ 99,106 NPV $ (10,894) IRR 4.76% Profitabiltiy Index (0.10) Payback Years 4.65 $(91,400) $ (72,800) S (54,200) $ (35,600) $ 19,500 0.65

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