I need the payback row for all years and the explanation on how to do it. Initial
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I need the payback row for all years and the explanation on how to do it.
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Initial Investment Cash flows from operating activities Revenue from sales Less cash paid for: Materials Wages Benefits R&D Interest Maintenance at 5% Other operating expenses Income taxes Net cash from operating activities Net cash flow PV factor at 10% Pesent Value Net Present Value (NPV) Internal Rate of Return Year 0 Present Value Index Payback (899,900) 0 1 (13,713,392) Year 1 200,000 (10,000) (900,000) (270,000) (5,000) 0 (44,995) (15,000) (42,000) (1,286,995) Year 2 200,000 (10,000) (900,000) (270,000) (5,000) 0 Year 3 (2,373,990) (2,373,990) 0.9091 (2,158,194) 0.8264 (1,961,865) 220,000 (10,000) (900,000) (270,000) (5,000) 0 Year 4 (10,000) (900,000) (270,000) (5,000) 0 (44,995) (44,995) (44,995) (15,000) (15,000) (15,000) (42,000) (46,200) (46,200) (1,286,995) (1,291,195) (1,291,195) (2,362,390) 0.7513 (1,774,864) 220,000 (2,362,390) 0.683 (1,613,512) Year 5 220,000 (10,000) (900,000) (270,000) (5,000) 0 Year 6 280,000 (10,000) (960,000) (288,000) (5,000) 0 (44,995) (44,995) (15,000) (16,000) (46,200) (58,800) (1,291,195) (1,382,795) (2,362,390) (2,485,590) 0.5645 0.6209 (1,466,808) (1,403,116) Year 7 280,000 (10,000) (960,000) (288,000) (5,000) 0 (44,995) (16,000) (58,800) (1,382,795) (2,485,590) 0.5132 (1,275,605) Year 8 280,000 (10,000) (960,000) (288,000) (5,000) (44,995) (16,000) (58,800) (1,382,795) (2,485,590) 0.4665 (1,159,528) Initial Investment Cash flows from operating activities Revenue from sales Less cash paid for: Materials Wages Benefits R&D Interest Maintenance at 5% Other operating expenses Income taxes Net cash from operating activities Net cash flow PV factor at 10% Pesent Value Net Present Value (NPV) Internal Rate of Return Year 0 Present Value Index Payback (899,900) 0 1 (13,713,392) Year 1 200,000 (10,000) (900,000) (270,000) (5,000) 0 (44,995) (15,000) (42,000) (1,286,995) Year 2 200,000 (10,000) (900,000) (270,000) (5,000) 0 Year 3 (2,373,990) (2,373,990) 0.9091 (2,158,194) 0.8264 (1,961,865) 220,000 (10,000) (900,000) (270,000) (5,000) 0 Year 4 (10,000) (900,000) (270,000) (5,000) 0 (44,995) (44,995) (44,995) (15,000) (15,000) (15,000) (42,000) (46,200) (46,200) (1,286,995) (1,291,195) (1,291,195) (2,362,390) 0.7513 (1,774,864) 220,000 (2,362,390) 0.683 (1,613,512) Year 5 220,000 (10,000) (900,000) (270,000) (5,000) 0 Year 6 280,000 (10,000) (960,000) (288,000) (5,000) 0 (44,995) (44,995) (15,000) (16,000) (46,200) (58,800) (1,291,195) (1,382,795) (2,362,390) (2,485,590) 0.5645 0.6209 (1,466,808) (1,403,116) Year 7 280,000 (10,000) (960,000) (288,000) (5,000) 0 (44,995) (16,000) (58,800) (1,382,795) (2,485,590) 0.5132 (1,275,605) Year 8 280,000 (10,000) (960,000) (288,000) (5,000) (44,995) (16,000) (58,800) (1,382,795) (2,485,590) 0.4665 (1,159,528)
Expert Answer:
Answer rating: 100% (QA)
To calculate the payback period for each year you need to follow these steps Calculate the cumulative cash flows for each year by summing up the cash ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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