Question: provide detailed NPV Analysis calculations in excel data sheet. Appendix One (Construct or lease) Objective: Should FFT lease or construct their own production facility Option

provide detailed NPV Analysis calculations in excel data sheet.

provide detailed NPV Analysis calculations in excel data sheet. Appendix One (Construct
or lease) Objective: Should FFT lease or construct their own production facility

Appendix One (Construct or lease) Objective: Should FFT lease or construct their own production facility Option 1: Construct Costs to incur: Buying land, construct building and getting ready $ 900,000 for use $ 20,000 15 $ 1,500,000 $ 500,000 $ 175,000 Taxes, insurance, and repairs (per year) Intended years of use Projected market value in 15 years Maximum down payment FFT can make Remainder in four payments of; Option 2: Lease Intended years of use First lease payment due now Rest of the lease payments (years 2-15) Operating costs to be paid by FFT Property taxes (annual) Insurance (annual) Initial one-time deposit, will be returned in year 18 Required rate of return 15 $ 80,000 $ 120,000 $ 15,000 $ 25,000 $ 50,000 14% Methodology: The consulting team is proposing to perform a NPV analysis and determine the benefit to leasing or construction, Based on the analysis, they will recommend the preferred option (construction or leasing). ale BIU-- A a. 2 Mergea Canter $ 282 Conditional Formats Cell Formatting Table Styles Insert Delete Format powl 27 Sort & Find & Fit-Select- ra- Clear But 22 Cells A Data set Calculations 13 115 16 10 19 20 21 22

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