Question: Week 8 Excel Spreadsheet to be used with the *actice Set: 2 Years 0 2 3 4 5 6 7 8 3 Acquisition stage cash

Week 8 Excel Spreadsheet to be used with the *actice Set: 2 Years 0 2 3 4 5 6 7 8 3 Acquisition stage cash flow: Initial Outlay (800,000) 5 6 Operating stage cash flow: Sales 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 8 Fixed Cost (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) 9 Variable Cost (240,000) (240,000) (240,000) (240,000) (240,000) (240,000) (240,000) (240,000) 10 Depreciation expense (68 000) 68 000) (68 000) (68 000) 68 000) (68 000) (68 000) (68 000) 11 Taxable income 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 12 Taxes (20.160) (20.160) (20.160) (20.160) (20.160) (20.160) (20.160) (20.160) 13 After tax income 51,840 51,840 51,840 51,840 51,840 51,840 51,840 51,840 14 Add back depreciation 68.000 68.000 68.000 68.000 68.000 68.000 68.000 68.000 15 Operating cash flows 119,840 119,840 119,840 119,840 119,840 119,840 119,840 119,840 16 17 Disposition stage cash flow: 500,000 18 19 Total cash flow (800,000) 119,840 119,840 119,840 119,840 119,840 119,840 119,840 619,840 20 Present Value 872.591 21 Net Present Value 72.591 22 23
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