Question: must answer with formulas Help Soved Save & LO FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calon -11 AA Wrap Text Custom FI

Help Soved Save & LO FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calon -11 AA Wrap Text Custom FI Paste BIU- B.A. === $. % 98% Insert Delete Format Merge Center - Alignment Conditional Format as Cell Formatting Table Styles Styles Clipboard Font Number Cell D18 A 1 C D E F Laurman, Inc. is considering the following project 2 Required investment in equipment s 1.750,000 3 Project life 5 years 4 Salvage value 225,000 5 6 The project would provide net operating income each year as follows: 7 Sales $ 2,750.000 8 Variable expenses 1.600.000 9 Contribution margin $ 1.150,000 10 Fixed expenses 11 Salaries, rent and other fixed out of pocket costs $20.000 12 Depreciation 350.000 13 Total fixed expenses 870.000 14 Net operating income $ 280,000 15 16 Cost of Capital 185 17 IN 1. Compute the annual net cash intlow from the project 19 20 2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvape value in year , 21 Year 22 2 3 $ Prev 1 of 1 Next ab (makeup lab) Help Save & Exit Submit DIS A C D F 21 22 0 4 10 20 2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvage value in year 5. Year 2 3 23 Net cash flow 24 Discount Factor 1 (1+1) 77000 23 Presente value of the cash flows 26. Net present value 27 203. Use Excel's NPV function to compute the present value of the cash flows from years 1 5. Do not include the original investment at time, zero 19 NPV of Cash Flows from Years 13 30 Deduct the cost of the investment 31 Net present value 31 Write an f/then statement to ACCEPT O REJECT the project based on NPV 33 44. Use Excel's IRR function to compute the projects internal rate of return Write in the statement to ACCEPT REJECT the project based on IRR 36 37 5. Compute the projects payback period. years 18 6. Compute the projects accounting rate of retum 41 Sheet1 READY Altemp (0) 2/3 Prev 1 of 1 Next MacBook Air
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