Question: plz solve the question and show me the excel formula you use or else it will be usless! thank you undnes Hong All Preview Layout

plz solve the question and show me the excel formula you use or else it will be usless! thank you
plz solve the question and show me the excel formula you use
or else it will be usless! thank you undnes Hong All Preview

undnes Hong All Preview Layout Views Werkbook Selection Window Zoom Panes UnhideWindow Putin Wedows Window Show Micro B23 D E F $ 1.750,000 5 years 225.000 A Laurman, Inc. is considering the following project: 2. Required investment in equipment 3 Project life * Salvage value 5 6 The project would provide niet operating income each year as follow 7 Sales 8 Variable expenses Contribution margin 10 Fixed expenses Salaries, rent and other fixed out of pocket costs Depreciation 13 Total fized expenses 14 Net operating income S 2.750.000 1.600.000 1.150.00 9 s 11 520,000 350,000 870.000 280.000 15 189 16 Cost of Capital 17 18 1. Compute the annual net cash inflow from the project 630000 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 2 33 Ner cash flow Macro Normal Pagetirek Page Custom ordines en Pow Layout Views Wew Show B23 Zoom 100% Zoom to New Arrange Free Swatch Selection Window A Presumide widow on Windows Zoom Wide MO 11 C A D E 16 Cost of Capital 189 17 1 1. Compute the annual net cash inflow from the project 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 0 2 3 23 Net cash flow 24 Discount Factor 1 (14) 1.000 25 Present value of the cash flows 26 Net present value 27 25. Use Excel NPV function to compuse the present value of the cash flows from yours 13. Do not include the original investment at time reto 29 NPV of Cash Flows from Years 1-5 30 Dedact the cost of the investment 31 Net present aloe 12 Write an ithen statement to ACCEPT OF REJECT the project based on NPV 33 34 4. Use Excel'IRR function to compute the projects internal rate of return Write an fhen statement to ACCEPT OF REJECT the project based on IRR 36 37 5. Compute the project's payback period 35 Sheett FERY

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!