Question: Please help! i'm stuck with this project. your help will be appreciated. Thanks Learning Objectives 1. Understand how to use EXCEL Spreadsheet s (a) Develop




Please help! i'm stuck with this project. your help will be appreciated. Thanks
Learning Objectives 1. Understand how to use EXCEL Spreadsheet s (a) Develop proforma Income Statement Using Excel Spreadsheet 7 (b) Compute Net Project Cashflows, NPV, and IRR 8 (c) Develop problem-solving and critical thinking skills and make long-term investment decisions 10 11 1) Life Period of the Equipment-4 years8) Sales for first year (1) 12 2) New equipment cost 13 3) Equipment ship & install cost $ (35,000) 10) Operating cost (60% of Sales) $ 200,000 $(200,000) 9) Sales increase per year 5% $ (120,000) 14 4) Related start up cost (5,000) (as a percent of sales in Year 1) 25,000 11) Depreciation -60% 15 5) Inventory increase 16 6) Accounts Payable increase 17 7) Equip. salvage value before tax S 15,000 13) Cost of Capital (Discount Rate) 18 19 20 21 ESTIMATING Initial Outlay (Cash Flow, CFO. T-o) Use 3-yr MACRIS S5,000 12) Marginal Corporate Tax Rate (T 21% 10% 23 24 Year CFO 0 CF1 CF2CF3 CF4 4 2 3 25 Investments: 26 1) Equipment cost 27 2) Shipping and Install cost 28 3) Start up expenses 29 Total Basis Cost (1+2+3) 30 4) Net Working Capital 31 Total Initial Outlay 32 33 Operations: SheetlSheet2 Sheet3 Chegg Study l Gui.. XFINC 33100 SPRIX
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