accounting HW

Comparison of Capital Budgeting Methods Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA. REVIEW VIEW Ruler Formula Bar Normal Page Break Page Custom Zoom 100% Zoom to Window Macros Gridlines Headings Preview Layout Views Selection Workbook Views Show Zoom Macros X 1. Compute the annual net cash inflow from the project A18 4 Salvage value 225,000 6 The project would provide net operating income each year as follows: 2,750,000 7 Sales 8 Variable expenses 1,600,000 9 Contribution margin. 1,150,000 10 Fixed expenses: 520,000 11 Salaries, rent and other fixed out-of pocket costs 350,000 12 Depreciation 13 Total fixed expenses 870000 14 Net operating income 15 16 Company discount rate 18% 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 year (s) 22 23 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine Sign In Comparison of Capital Budgeting Methods Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA. REVIEW VIEW Ruler Formula Bar Normal Page Break Page Custom Zoom 100% Zoom to Window Macros Gridlines Headings Preview Layout Views Selection Workbook Views Show Zoom Macros X 1. Compute the annual net cash inflow from the project A18 4 Salvage value 225,000 6 The project would provide net operating income each year as follows: 2,750,000 7 Sales 8 Variable expenses 1,600,000 9 Contribution margin. 1,150,000 10 Fixed expenses: 520,000 11 Salaries, rent and other fixed out-of pocket costs 350,000 12 Depreciation 13 Total fixed expenses 870000 14 Net operating income 15 16 Company discount rate 18% 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 year (s) 22 23 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine Sign In