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11. Need excel keys instead of values according to my provided excel sheets for the yellow parts Computing Capital Budgeting Methods Laurman, Inc. is considering
11.
Need excel keys instead of values according to my provided excel sheets for the yellow parts
Computing Capital Budgeting Methods Laurman, Inc. is considering a new project and has provided the details of the project. The Controller has asked you to compute various capital budgeting methods to help aid in the decision to pursue the investment. Here are some tips for using Excel: - Cell Reference: Allows you to refer to data from another cell in the worksheet. If you entered "=B5" into a blank cell, the formula would output the value from cell B5. - Basic Math Functions: Allow you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), " (asterisk sign to multiply), and / (forward slash to divide). For example, if you entered "=B4+B5" in a blank cell, the formula would add the values from those cells and output the result. - SUM Function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges. If you entered "=SUM(C4,C5,C6)" into a blank cell, the formula would output the result of adding those three separate cells. Similarly, if you entered "=SUM(C4:C6)", the formula would output the same result of adding those cells. - RATE Function: Allows you to return the interest rate per period. The syntax of the RATE function is "=RATE ( nper,pmt,pv,[fv],[type], [guess)" the result is the percentage interest rate value for the related inputs. The nper argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the life of the investment and this argument must be included if the [fv] argument is not included. The pvargument is the present value, or the total amount that series of future payments is worth now. The [fv] argument is the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The [type] argument is a logical value of 0 or 1 , which indicates when the payments are due where 1 is the payment at the beginning of the period and 0 , is the payment at the end of the period. Both the [fv] and [type]values are optional arguments to have the formula work, which is why they are surrounded by brackets in the syntax, however, these values would not be entered with brackets in the actual function. The [guess] argument is also optional and is your guess for what the rate will be, however, if omitted the system assumes a guess of 10 percent. For this assignment. please include both the [pmt] and [tv] arguments, but leave out the [type] and [guess]]arguments from the function. Also, the pvargument should be entered as negative value. - PV Function: Allows you to perform a present-value calculation. The syntax of the PV function is "=PV(rate, nper,pmt, [fv], [type])" and its output is the total amount that a series of future payments is worth now (also known as the present value). The rate argument is the interest rate per period. The nper argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the life of the investment, and this argument must be included if the [fv] argument is not included. The [fv] argument is the future value, or the cash basis to attain after the last payment is made; this argument must be included if the pmt argument is omitted. The [type] argument is a logical value of 0 or 1 , which indicates when the payments are due, where 1 is the payment at the beginning of the period and 0 is the payment at the end of the period. Both the [fv] and [type] values are optional arguments to include, which is why they are surrounded by brackets in the syntax. However, these values would not be entered with brackets in the actual function. 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. A1 (Use cells A4 to C18 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. \begin{tabular}{l|l} 22 & \\ 23 & 1. Compute the annual net cash inflow from the project. \\ 22 & . \end{tabular} 2. Complete the table to compute the net present value of the investment. 38 Use Excel's PV function to compute the present value of the future cash flows 39 Deduct the cost of the investment 40 Net present value 42 3. Use Excel's RATE function to compute the project's internal rate of return 44 4. Compute the project's payback period. \( \bar{\hline} \) 45 46 5. Compute the project's simple rate of return. 47 49Step by Step Solution
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