Question: Please answer the remaining yellow boxes and the boxes with red Xs Reposting because it was answered incorrectly. Formulas would be greatly appreciated! Laurman, Inc.

Please answer the remaining yellow boxes and the boxes with red Xs

Reposting because it was answered incorrectly.

Formulas would be greatly appreciated!

Please answer the remaining yellow boxes and the boxes with red Xs

Laurman, Inc. is considering the following project: Required investment in equipment Project life Salvage value The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries, rent and other fixed out-of pocket costs Depreciation Total fixed expenses Net operating income \begin{tabular}{|r|} \hline 2,750,000 \\ 1,600,000 \\ \hline$1,150,000 \\ \hline 870,000 \\ \hline$280,000 \\ \hline \hline \end{tabular} Company discount rate Required: will display in parentheses.) 1. Compute the annual net cash inflow from the project. $630,000 2. Complete the table to compute the net present value of the investment. Use Excel's PV function to compute the present value of the future cash flows $2,401,262.38 $4,606,262.38 3. Use Excel's RATE function to compute the project's internal rate of return 18.00% 4. Compute the project's payback period. 3.1 years 5. Compute the project's simple rate of return. 12.70%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!