Question: Looking for assistance with the below question. I need the answer to show all steps in completing the assignment. Thanks Using the Cash Flow Diagrams
Looking for assistance with the below question. I need the answer to show all steps in completing the assignment. Thanks
Using the Cash Flow Diagrams you created in Module 2, alter your spreadsheet so it will generate two cash flow diagrams. One you have already created in Module 2, the other should generate the PW/PV of the cash flows. In the solution, generate an additional cash flow diagram showing the PW of each cash flow on each of the bars of the cash flow diagram. Your spreadsheet should become more generic so different cash flows could be entered easily into the model (i.e. annual cash flows only need to be entered once but each year the cash flow occurs should be populated). Your submission should include the ready to use model in addition to a tab demonstrating the model. Use the same data provided in Activity 2.3:
| Initial Cost | $100,000 |
| Annual Cash Flows | $30,000 |
| Year 3 Overhaul | $10,000 |
| Year 6 Clean-up Costs | $15,000 |
| Equipment Salvage Value | $10,000 |
| r (not provided in Module 2) | 0.10 |
Your model should provide the diagram as discussed and the NPV of the modeled cash flows.
Model 2.3
For this activity you will create and submit a spreadsheet that will develop cash flow diagrams. The spreadsheet should be able to generate cash flows for up to ten years. Your Microsoft Excel Workbook should include a generic ready to use template with two tabs. The first tab should recreate the example in figure 2-10. Be sure to include a column for positive cash flows one would expect as income from an investment. The second tab should generate a cash flow diagram for the following problem: Your firm made a capital investment of $100,000 dollars in year zero. In each of the following six years, the investment is expected to generate after tax positive cash flows of $30,000. In year three, the project will require a $10,000 overhaul. When the project is ended in year six, there will be a clean-up cost of $15,000 and the equipment will have a salvage value of $10,000.
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