Question: Please answer these in excel with formulas! Dog Upl Franks is looking at a new sausage system with an installed cost of $385,000. This cost

Please answer these in excel with formulas!
 Please answer these in excel with formulas! Dog Upl Franks is
looking at a new sausage system with an installed cost of $385,000.

Dog Upl Franks is looking at a new sausage system with an installed cost of $385,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $60,000. The sausage system will save the firm $135,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project? Input area: (Use cells A6 to 812 from the given information to complete this question. You must use the built-in Excel function to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax to answer this question. Faxes on the salvage value should be negative for a tax liability and positive for a tax credit.) Output area: Aftertax salvage value sell equipment Takes Aftertax cash flow rr Year 0 Year 1 Costs Depreciation EBT Taxes Net income OCF Capital spending Net working capital Total cash flow NPV r r r r r r Year 2 Year 3 Year 4 Year 5 23 24 25 26 Yearo tit: r r r 36 37 38 (4) Workbok Statistics

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!