Robenson Resorts is consider X l e Question7-Chapter11 HW- X Integrated Excel Tool X H Course Hero X ' Jul McGraw-Hill Connect X l + v C ezto.mheducation.com/ext/common/excelonline/exceItool.html7Q_13252719744705315_ans d) a? I I] G 5 File Home Insert Draw Formulas Data Review View Help / Editing v E Comments 9v m garb\" w v s _v AV _ WZV General v $v in i? F2 W Z? pv 1R x 7C V / \\/ [3: Accessibility tab summary: Project data about Laurman incorporated is presented in rows 2 to 171A statement of requirement 1 is presented in row 24, input cell for student presentation is on cell V 7 A B C D E F G H I J 1 :- 2 Laurman, Incorporated is considering the following project: 3 4 Required investment in equipment 3 1,750,000 5 Project life 5 years 6 Salvage value 225,000 7 8 The project would provide net operating income each year as follows: 9 10 Sales S 2,750,000 11 Variable expenses 1 600 000 12 Contribution margin 3 1,150,000 13 Fixed expenses: 14 Salaries, rent and other xed out-of pocket costs 3 520,000 15 Depreciation 350 000 16 Total xed expenses 870 000 17 Net operating income 5 280 000 18 19 Cost of Capital 18% 20 21 Required: 22 Note: Use cell A2 to A19 from the given information to complete this question. 23 24 1' Compute the annual net cash inow from the project. 7 25 26 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' 27 7s E EJGraded Worksheet + Calculation Mode: Automatic Workbook Statistics v Give Feedback to Microsoft 100% + Robertson Resorts is consider X l e Question7-Chapter11HW-' X Integrated Excel Tool X H Course Hero X ' Isl McGraw-Hill Connect X l + v C i ezto.mheducation.com/ext/common/excelonline/exceltool.html?Q_13252719744705315_ans ) 1} I I] G 5 Excel McGraw Hill Excel Question Saved ,0 Search (Option + Q) File Home Insert Draw Formulas Data Review View Help / Editing v Cl Comments 9V |jV 6 Calibn Vll V B _v @v _A_V 2b :V General V $V 03 0% M W W HV Z? /OV 1R x 7C V / M [3: Accessibility tab summary: Project data about Laurman incorporated is presented in rows 2 to 17. A statement of requirement 1 is presented in row 24, input cell for student presentation is on cell V A A B C D E F G H I J 4. 24 1. Compute the annual net cash inow from the project. 7 25 26 2. Complete the following timeline to compute the net present value of the future cash ows for this project, Don't forget to include the salvage value in year 5. 27 28 29 7 ,, , , 7W W 30 Net cash ow 31 Discount Factor = 1 /((1+r)"n) 1.000 7 7 7 32 Present value of the cash flows ' 7 r 7 33 Net present value 7 34 35 3. Use Excel's NPV function to compute the present value of the cash ows from years 1-5. Do not include the original investment at time zero. 36 37 38 NPV of Cash Flows from Years 1-5 ' 39 Deduct the cost of the investment ' 40 Net present value ' 41 Write an if/then statement to ACCEPT or REJECT the project based on NPV ' 42 43 4. Use Excel's IRR function to compute the project's internal rate of return. 7 44 Write an if/then statement to ACCEPT or REJECT the project based on IRR 45 46 5. Compute the project's payback period, 7 years 47 48 6. Compute the project's accounting rate of return. 7 49 50 E ElGiaded Worksheet + Calculation Mode: Automatic Workbook Statistics v Give Feedback to Microsoft 100% +