302 Prime Page Data Pret 2 The same equipment manufacturer has another opportunity presented to and the current actory to increase production and may be able to reach new market with tranded manufacturing capacity. The companyat determined the following information and sumptions for this new expansion 1) The capitalisment for project will cost the con5485.000 Depreciation will be called over a year it with no salvage value 21 the projected income for each of the five years are as follow Yeart Year 2 5 000 Year 21.00 Year 50.000 Years 000 Total 149.000 Instruction Unghemate d. . come theatre of retum pregare a tabletowanie compute the period comote the NV Should them to themet e drite which Compute the fretum GEN o ido 3 4 5 17 W E R T T Y U s D G G 202 Excel Project 3 - Instructions & Template - Excel Search (Alt+O) aw Page Layout Formulas Data Review View Help fi M N P R b) Prepare a table of the net annual cash flow and cumulative net cash flow. (Hint: Don't forget about depreciation's impact on cash flow. Refer to M10 Excel Example!) Net Annual Cash Flow Cumulative Net Cash Flow Year 0 1 2 3 4 2 c) Compute the payback period. (Again, refer to M10 Excel Example!) 2 M N O P Q R S 2 d) Compute the NPV using the discount rate of 13% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows: 2 Present value of cash outflows: Net present value 1 Is this proposal acceptable using this discount rate? Respond Yes or No. e) Compare results from Project 2 above to those of Project 1 by marking an "X" in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 13% discount rate, letter Annual Rate of Return Net Present Value Cash Payback Project 1 Project 2 1 1 1 Based on the above, which project should the company select Enter Project 1 or 2 1 302 Prime Page Data Pret 2 The same equipment manufacturer has another opportunity presented to and the current actory to increase production and may be able to reach new market with tranded manufacturing capacity. The companyat determined the following information and sumptions for this new expansion 1) The capitalisment for project will cost the con5485.000 Depreciation will be called over a year it with no salvage value 21 the projected income for each of the five years are as follow Yeart Year 2 5 000 Year 21.00 Year 50.000 Years 000 Total 149.000 Instruction Unghemate d. . come theatre of retum pregare a tabletowanie compute the period comote the NV Should them to themet e drite which Compute the fretum GEN o ido 3 4 5 17 W E R T T Y U s D G G 202 Excel Project 3 - Instructions & Template - Excel Search (Alt+O) aw Page Layout Formulas Data Review View Help fi M N P R b) Prepare a table of the net annual cash flow and cumulative net cash flow. (Hint: Don't forget about depreciation's impact on cash flow. Refer to M10 Excel Example!) Net Annual Cash Flow Cumulative Net Cash Flow Year 0 1 2 3 4 2 c) Compute the payback period. (Again, refer to M10 Excel Example!) 2 M N O P Q R S 2 d) Compute the NPV using the discount rate of 13% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows: 2 Present value of cash outflows: Net present value 1 Is this proposal acceptable using this discount rate? Respond Yes or No. e) Compare results from Project 2 above to those of Project 1 by marking an "X" in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 13% discount rate, letter Annual Rate of Return Net Present Value Cash Payback Project 1 Project 2 1 1 1 Based on the above, which project should the company select Enter Project 1 or 2 1