Question: Please show the excel formulas used 1. Complete the capital budgeting methods. XE 5 Comparison of Capital Budgeting Methods - Excel REVIEW VIEW FILE HOME

Please show the excel formulas used 1. Complete the capital budgeting methods.XE 5 Comparison of Capital Budgeting Methods - Excel REVIEW VIEW FILEPlease show the excel formulas used

1. Complete the capital budgeting methods. XE 5 Comparison of Capital Budgeting Methods - Excel REVIEW VIEW FILE HOME INSERT PAGE LAYOUT FORMULAS DATA X Calibri 11 AA 392 Be Wrap Text Custom ? ES Sign In AutoSum - Fill- Sort & Find & Clear - Filter Select Editing Paste BIU- - A- : 40 $ % Merge & Center - 08 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Clipboard Fant Alignment Nurnber Cells D24 fx S 5 855,000.00 B D E 13 Total fixed expenses 870.000 14 Net operating income 280.000 15 16 Cost of Capital 18% 17 18 1. Compute the annual net cash inflow from the project. S 630.000 19 20 2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvage value in year 5. 21 Year 22 22 0 1 2 3 4 23 Net cash flow $ (1,750,000.00) $ 630,000.00 $ 630,000.00 $ 630.000.00 $ 630.000.00 $ 24 Discount Factor = 1/((1+r)^n) 1.000 25 Present value of the cash flows $ (1,750,000.00) 26 Net present value 27 28 3. Use Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investment at time zero 29 NPV of Cash Flows from Years 1-5 30 Deduct the cost of the investment 31 Net prenent value 32 Write an if(then statement to ACCEPT OF REJECT the project based on NPV 33 4. Use Excel's IRR function to compute the project's internal rate of return 35 Write an iffthen statement to ACCEPT or REJECT the project hased on IRR CL TA 5 Comparison of Capital Budgeting Methods - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In 11 Calibri -11 11 - A A Wrap Text Custom B2- H FR Insert Delete Format Paste BIU Merge & Center - $ % Conditional Format as Cell Formatting Table Styles Styles AutoSum - Fill - Sort & Find & Clear - Filter Select Editing Clipboard Font Alignment Number Cells D24 v : D E F G 4 630,000.00 $ 5 855,000.00 B 2 0 1 2 3 3 Net cash flow $ (1,750,000.00) $ 630,000.00 $ 630,000.00 $ 630,000.00 $ 4 Discount Factor = 1/((1+r)^n) 1.000 5 Present value of the cash flows $ (1,750,000.00) 6 Net present value -7 8 3. Use Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investment at time zero. 9 NPV of Cash Flows from Years 1-5 0 Deduct the cost of the investment 1 Net present value 2 Write an if/then statement to ACCEPT or REJECT the project based on NPV -3 4 4. Use Excel's IRR function to compute the project's internal rate of return 5 Write an if/then statement to ACCEPT or REJECT the project based on IRR -6 7 5. Compute the project's payback period. years 8 9 6. Compute the project's accounting rate of return. -0 -1 2 -3 -2

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