Question: Please Solve the following USING EXCEL, not typed. Please show formulas/work on excel thank you! Will upvote! 1- A new project will require the purchase
| Please Solve the following USING EXCEL, not typed. Please show formulas/work on excel thank you! Will upvote! 1- A new project will require the purchase of an asset priced at $3,000, the asset will require transportation and installation of $500. The project will also require an increase in net working capital of $800 in the initial period which is expected to be recovered in the last year. The after tax salvage of the asset at the end of 4 years is $300. Expected operating cash flows are given in the table below.
|
Assuming cost of capital is 5%, what is the net present value of this project?
| 306.61 | ||
| 292.00 | ||
| 1,000.00 | ||
| 808.61 | ||
| 589.61 |
2-
| Your company is evaluating a new project that will require the purchase of an asset for $32,000 installed. The asset will be depreciated S/L for 4 years to zero salvage. The economic life for the project is only 3 years after which the asset is expected to have a market value of $9,500. Assuming tax rate is 30%. Calculate the after tax salvage for the asset at the end of 3 years. |
| 8,900 | ||
| 9,050 | ||
| 9,950 | ||
| 8,000 | ||
| 7,545 |
3- Come and Get it Co. is considering a project that will require the following changes in current assets and current liabilities in the initial period: (Please note the direction of the change in the accounts)
Increase in A/R of $1,000
Decrease in Inventory of $2,500
Decrease in A/P of $3,000
What is the change in net working capital?
| 1,500 | ||
| 3,000 | ||
| -1,500 | ||
| -4,500 | ||
| 4,500 |
Thank you in advance!
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