give the correct formula to calculate PV in column J? 145 Clipboard 2 fx A B 30

 give the correct formula to calculate PV in column J? 

 

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145 Clipboard 2 fx A B 30 31 32 Font =PV($E$36,1,,-145) Alignment D E F G H Payback Table View 33 Cost of new equipment (at year 0) 34 Corporate income tax rate - Federal Table 1- Data 191.10 million 26.0% 8.0% 8.28% 35 Corporate income tax rate - State of Maryland 36 Discount rate for the project using WACC (Tab 2) 37 Loan Amount 38 Loan Interest rate (Prime + 2) 171.99 million 5.25% L Number 39 40 Table 2- After-tax Cash Flow Table 41 (all figures in $ millions) Projected Cash Projected Cash Year Inflows from Operations Outflows from Operations Depreciation Expense Interest Expense Projected Taxable Income 42 Projected Projected Projected Federal State After-tax Income Income Cash Taxes Taxes Flows PV 3444 Excel function to use: SLN IPMT PV 0 ($191.10) 45 1 $850.0 $840.0 $23.89 $9.03 ($22.92) ($5.96) ($1.83) A6 $8.09 46 2 $900.0 $810.0 $23.89 $8.09 $58.02 $15.09 $4.64 $62.18 $57.43 47 3. $990.0 $870.0 $23.89 $7.11 $89.01 $23.14 $7.12 $82.63 $76.31 48 449 4 $1,005.0 $900.0 $23.89 $6.07 $75.04 $19.51 $6.00 $73.42 $67.80 5 $1,200.0 $1,100.0 $23.89 $4.98 $71.14 $18.50 $5.69 $70.84 $65.42 50 6 $1.300.0 $1.150.0 $23.89 $3.83 $122.29 $31.79 $9.78 $104.60 $96.60 51 7 52 86 $1.350.0 $1.300.0 $23.89 $2.61 $23.50 $6.11 $1.88 $39.40 $36.38 $1,320.0 $1,300.0 $23.89 $1.34 ($5.23) ($1.36) ($0.42) $20.44 $18.87 53 PV $426.91 54 NPV₁-calculated NPV including interest expense calculated NPV at the lower discount rate of 5.02% NPV 55 NPV 56 4 Instructions Cost of Capital Ready Accessibility: Investigate Type here to search Payback Budget Projections The Best F... C:\Users\kh... AdvanceFl... Inb DI 145 Clipboard 2 fx A B 30 31 32 Font =PV($E$36,1,,-145) Alignment D E F G H Payback Table View 33 Cost of new equipment (at year 0) 34 Corporate income tax rate - Federal Table 1- Data 191.10 million 26.0% 8.0% 8.28% 35 Corporate income tax rate - State of Maryland 36 Discount rate for the project using WACC (Tab 2) 37 Loan Amount 38 Loan Interest rate (Prime + 2) 171.99 million 5.25% L Number 39 40 Table 2- After-tax Cash Flow Table 41 (all figures in $ millions) Projected Cash Projected Cash Year Inflows from Operations Outflows from Operations Depreciation Expense Interest Expense Projected Taxable Income 42 Projected Projected Projected Federal State After-tax Income Income Cash Taxes Taxes Flows PV 3444 Excel function to use: SLN IPMT PV 0 ($191.10) 45 1 $850.0 $840.0 $23.89 $9.03 ($22.92) ($5.96) ($1.83) A6 $8.09 46 2 $900.0 $810.0 $23.89 $8.09 $58.02 $15.09 $4.64 $62.18 $57.43 47 3. $990.0 $870.0 $23.89 $7.11 $89.01 $23.14 $7.12 $82.63 $76.31 48 449 4 $1,005.0 $900.0 $23.89 $6.07 $75.04 $19.51 $6.00 $73.42 $67.80 5 $1,200.0 $1,100.0 $23.89 $4.98 $71.14 $18.50 $5.69 $70.84 $65.42 50 6 $1.300.0 $1.150.0 $23.89 $3.83 $122.29 $31.79 $9.78 $104.60 $96.60 51 7 52 86 $1.350.0 $1.300.0 $23.89 $2.61 $23.50 $6.11 $1.88 $39.40 $36.38 $1,320.0 $1,300.0 $23.89 $1.34 ($5.23) ($1.36) ($0.42) $20.44 $18.87 53 PV $426.91 54 NPV₁-calculated NPV including interest expense calculated NPV at the lower discount rate of 5.02% NPV 55 NPV 56 4 Instructions Cost of Capital Ready Accessibility: Investigate Type here to search Payback Budget Projections The Best F... C:\Users\kh... AdvanceFl... Inb DI

Answer rating: 100% (QA)

To calculate the Present Value PV in column J you can use the PV functi... View the full answer