Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet.

Compile your calculations in a Microsoft Excel document

Compare the cost of the truck to the cash flow records

Frank Smith Plumbing Details

Frank Smith Plumbing
Data Needed for analysis:
	Project	Year-1	Year-2	Year-3	Year-4	Year-5	Year-6	Year-7	Year-8
Cost of Capital (borrowing)	11.00%
Cost of Truck	$215,000
Cost of additional equiment attached to truck	$15,000
Tax rate	38%
Annual Before Tax & Depreciation Truck Projected Earnings		$70,000	$70,000	$65,000	$60,000	$55,000	$50,000	$40,000	$30,000
Depreciation Percentage Rate (MACRS)*		20.0%	32.0%	19.2%	11.5%	11.5%	5.8%	0.0%	0.0%
* The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property for depreciation purposes.
Calculate the following -- light yellow highlighted cells need to be completed
	Year-0	Year-1	Year-2	Year-3	Year-4	Year-5	Year-6	Year-7	Year-8
Annual Before Tax & Depreciation Truck Projected Earnings
Depreciation Expense
Annual Before Tax Truck Projected Earnings
Tax
Annual Projected Truck Earnings
Depreciation to add back
Projected Truck Net Cash Flow
Decision Criteria:
Pay Back Period		Years
Discounted Pay Back Period (DPB)**		Years
Net Present Value
Internal Rate of Return
Profitability Index
Discounted Cash Flow Needed for DPB Calc.