Question: Please complete the table based on the description. I tried to start it but I am not sure it is correct. Accounting 312-Rossco's Feasibility Ana
Accounting 312-Rossco's Feasibility Ana ile Home Insert Page Layout Formulas Data Review View Developer Help Tell Review View Developer HelpO Tell David is considering the purchase of a new computer with the following estimated costs: initial systems design, $54,000; hardware, $74,000; software, $35,000; one-time initial training $11,000; system installation, $20,000; and file conversion, $12,000. A new reduction of three 41 employees is expected, with average salaries of $40,000. The system will decrease average 5 yearly inventory by $150,000. Annual operating costs will be $30,000 per year. 7 The expected life of the machine is four years, with an estimated salvage value of zero. The B l effective tax rate is 21%. All computer purchase costs will be depreciated using the straight- 9 line method over its four-year life. Rossco can invest money made available from the reduction 101 in inventory at its cost of capital of 10%. All cash flows, except for the initial investment and 11 start-up costs, are at the end of the year. 12 13 REQUIRED 4 Use a spreadsheet to perform a feasibility analysis to determine whether Rossco should spurchase the computer. Compute the following as part of the analysis: initial investment, after- 6 tax cash flows for years 1 through 4, payback period, net present value, and internal r return. Answer the question "should Ressco purchase the new computer and why?" In order to conduct sensitivity analysis, create a spin buttom to allow the tax rate to be altered from 15% to 30% at an increment of 1%. Also create a scroll bar to allow the cost of capital to | be altered from 5% to 15% at an increment of 1%. Rossco CaseF DOLL
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