1. Complete the capital budgeting methods. Insert 5 years Comparison of Capital Budgeting Methods - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW X Calibri - 11 Wrap Text General Paste BIU - > A- E Merge & Center - $. % *8.99 Conditional Format as Cell Formatting Table Styles Clipboard Font Alignment Number Styles fa Laurman, Inc. is considering the following project: A B D E 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment $ 1,750,000 3 Project life 4 Salvage value 225.000 5 6 The project would provide net operating income each year as follows: 7 Sales S 2,750,000 8 Variable expenses 1,600,000 9 Contribution margin $ 1.150,000 10 Fixed expenses: 11 Salaries, rent and other fixed out of pocket costs $ 520,000 12 Depreciation 350.000 13 Total fixed expenses 870.000 14 Net operating income S 280.000 15 16 Cost of Capital 18% 17 18 1. Compute the annual net cash inflow from the project 25 Points sy Dropshipping Course Saved Help Save 1. Complete the capital budgeting methods. B5 FILE HOME INSERT Comparison of Capital Budgeting Methods - Excel REVIEW VIEW PAGE LAYOUT FORMULAS DATA X Callbri 11 Paste BRE BIU- A A Wrap Text General Merge & Center $. % Alignment Laurman, Inc. is considering the following project: 3. Conditional Formatas Cell Formatting" Table Styles Insert Delete Format Clipboard Font Number A Cells D E F 19 Year 0 2 3 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 22 23 Net cash flow 24 Discount Factor 1/((1+r)^n) 25 Present value of the cash flows 26 Net present value 1.000 27 28 3. Use Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investment at time zero 29 NPV of Cash Flows from Years 1.5 30 Deduct the cost of the investment 31 Net present value 32 Write an if/then statement to ACCEPT or REJECT the project based on NPV 33 34 4. Use Excel's IRR function to compute the project's internal rate of retum 35 Write an if/hen statement to ACCEPT or REJECT the project based on IRR 36