Please do it in excel.
		5.0 points
1. On January 2, 2013, Thunder Corporation's board of directors considered the acquisition of a new line of equipment for its new Tower Division.
Details surrounding the proposed investment are shown below, opportunity cost is 14 % compounded continuously.
Tower's board has asked you to evaluate NPV and IRR on the project. In addition, due to concerns about the business climate in Washington,
the board has also asked you to evaluate the impact on each of the above in Asia where corporate tax rates average 18%.
Note: equipment is disposed of at the end of Year 8 for $18,000, and is fully depreciated
a. Balance Sheet: (3.0)
b. NPV (1.50)
c. IRR (.50)
Cash		40,000.00
Accounts Receivable		-	1,400	2,700	3,550	4,150	2,750	1,975	1,050	-
Inventory		-	4,500	12,900	16,500	19,000	12,500	7,500	2,350	-
Prepaid Assets			1,522	2,855	3,116	2,450	1,360	888	454
Equipment		57,000	57,000	57,000	57,000	57,000	57,000	57,000	57,000	-
Accumulated Depreciation*
Net Equipment		57,000	57,000.00	57,000.00	57,000.00	57,000.00	57,000.00	57,000.00	57,000.00	-
Total Assets		97,000
Accounts Pay		-	1,050	1,700	3,575	2,900	1,200	850	475	-
Accrued Liabilities			1,200	1,450	1,777	2,000	1,245	900	750	-
Unearned Revenue			11,000	9,167	7,333	5,500	3,667	1,833	0
Note Payable		40,000	-	-	-	-	-
Bond Payable
Paid in capital		59,100	59,100	62,100	62,100	62,100	62,100	62,100	62,100	-
Retained earnings		(2,100)
Tot Liab & Eq		97,000.00
			-	-	-	-	-	-	-	-
Period		0	1	2	3	4	5	6	7	8
Capital Investment/salvage		57,000								17,000
Sales		-	25,850	38,775	59,400	74,250	51,000	43,500	22,000
Cost of Goods Sold			14,735	17,449	26,730	33,413	25,500	23,925	13,200
Other Costs		3,500	2,500	2,750	3,000	3,500	2,900	2,400	1,675
Depreciation			8,143	8,143	8,143	8,143	8,143	8,143	8,142.86
Total costs			25,377	28,342	37,873	45,055	36,543	34,468	23,018
EBIT		(3,500)	473	10,433	21,527	29,195	14,457	9,032	(1,018)	18,000
Interest			-	-	-	-	-	-	-	-
EBT			473	10,433	21,527	29,195	14,457	9,032	(1,018)	18,000
Tax @ 40%	0.4	(1,400)	189.06	4,173.36	8,610.86	11,677.86	5,782.86	3,612.86	(407.14)	7,200.00
After-tax Profit		(2,100)	284	6,260	12,916	17,517	8,674	5,419	(611)	10,800
Capital Disposal										-
Change in Net Working Capital
Amortizaation
Net Cash Flow
PV Cash flows
NPV
IRR
Annual rate	1.150273691
	0.150273691
IRR	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!	#NUM!
EAC	$0.00
PVANF	4.483286177	-
		Straight line Depreciation Schedule				MTBF	8
		To zero salvage					0.125
	Year	BV	Depr
	0	57,000.00				0	0	1
	1	48,857.14	8,142.86			1	0.117503097	0.882496903
	2	40,714.29	8,142.86			2	0.221199217	0.778800783
	3	32,571.43	8,142.86			3	0.312710721	0.687289279
	4	24,428.57	8,142.86			4	0.39346934	0.60653066
	5	16,285.71	8,142.86			5	0.464738571	0.535261429
	6	8,142.86	8,142.86			6	0.527633447	0.472366553
	7	(0.00)	8,142.86			7	0.58313798	0.41686202
			57,000.00			8	0.632120559	0.367879441
			Note Payable
		Date	Interest	Pmt	Amt	Balance	Rate = 10%
		0				40000
		1
		2
		3
		4
		5
			Bond Payable						FV	10000
									Coupon	0.07
		Date	Interest	Pmt	Amt	Balance	Rate = 10%		Term	5
		0				40000			Yield	0.09
		1							PV	10000
		2
		3
		4
		5