Question: Solve in Excel, show all formulas. here is the rest of the prompt: Youare interested in buying a consulting business. The business isvalued at$20,000.Calculatecash flow

Solve in Excel, show all formulas.


G19 X fx A B 1 MAXIMUM BID: WHAT AM I WILLING TO PAY? 2 Discount rate 0.04 3 Tax rate 0.21 4 Sales $10,000 5

here is the rest of the prompt:


You are interested in buying a consulting business. The business is valued at $20,000. Calculate cash flow to get the necessary data to find the project NPV. Then calculate the maximum amount you are willing to invest to buy the business. Do you purchase the consulting business? Use straight line depreciation.

the consulting business is valued at 20,000 dollars. This is the asset involved.
 

G19 X fx A B 1 MAXIMUM BID: WHAT AM I WILLING TO PAY? 2 Discount rate 0.04 3 Tax rate 0.21 4 Sales $10,000 5 Expenses $6,000 Straight line 6 Depreciation 7 Maximum bid 8 Year 9 Sales 10 Expenses 11 Depreciation 12 EBIT 13 NOPAT 14 Depreciation 15 Consulting Business cash flow 16 Consulting Business NPV 17 18 What are you willing to pay? 19 Do you purchase the consulting business? 20 Why? 21 2 D 3 4 G H Reference chapter six from page 239. 5 33

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