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Assignment Leaming Objectlves: (a) Develop a proforma project income statement using an Excel spreadsheet (b) Compute net project cash flows, NPV, IRR and Payback period

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Assignment Leaming Objectlves: (a) Develop a proforma project income statement using an Excel spreadsheet (b) Compute net project cash flows, NPV, IRR and Payback period (c) Perlorm sensitivity and scenario analyses (d) Develop problem-solving and critical thinking skills Assignment Instructions: There are 3 parts to this assignment, which combines using Excel to perform calculations and answering the eight questions on the "Additional Questions" tab. The use of formulas and cell references (rather than hard typing in numbers) should be used in all cases where they can. To gulde you, the cells shaded gray are where formulas, numerical inputs or calcuations are needed in order to complete the assignment. Your grade for this assignment will be determined by a combination of the correctness of your financial math, good use of Exoel functionality and spreadsheet formatting, and the completeness of your answers to the questions. In this assignment, you are evaluating a potential capital investment projoct that has a 4 year Ife. The financial details are as follows: In this assignment, you are evaluating a potential capital investment project that has a 4 year life. The financial details are as follows: PART 1A: Use the Excel cells below to calculate all estimated project cash flows for the BASE CASE revenue growth. Depreciation is straight line over the useful life of the equipment. Solve for the NPV, IRR and Payback period. Round off NPV to the nearest dollar, IRR to 1 decimal place and Payback to 2 decimals. PART 1A: Use the Excel cells below to calculate all estimated project cash flows for the BASE CASE revenue PART 2A: Do a similar analysis as in Part 1 to analyze a new scenario where the equipment is fully depreciated in the first year. All other inputs remain the same. Re-calculate NPV, IRR and Payback period of the project. HINT: negative EBIT creates a tax credit! Assignment Leaming Objectlves: (a) Develop a proforma project income statement using an Excel spreadsheet (b) Compute net project cash flows, NPV, IRR and Payback period (c) Perlorm sensitivity and scenario analyses (d) Develop problem-solving and critical thinking skills Assignment Instructions: There are 3 parts to this assignment, which combines using Excel to perform calculations and answering the eight questions on the "Additional Questions" tab. The use of formulas and cell references (rather than hard typing in numbers) should be used in all cases where they can. To gulde you, the cells shaded gray are where formulas, numerical inputs or calcuations are needed in order to complete the assignment. Your grade for this assignment will be determined by a combination of the correctness of your financial math, good use of Exoel functionality and spreadsheet formatting, and the completeness of your answers to the questions. In this assignment, you are evaluating a potential capital investment projoct that has a 4 year Ife. The financial details are as follows: In this assignment, you are evaluating a potential capital investment project that has a 4 year life. The financial details are as follows: PART 1A: Use the Excel cells below to calculate all estimated project cash flows for the BASE CASE revenue growth. Depreciation is straight line over the useful life of the equipment. Solve for the NPV, IRR and Payback period. Round off NPV to the nearest dollar, IRR to 1 decimal place and Payback to 2 decimals. PART 1A: Use the Excel cells below to calculate all estimated project cash flows for the BASE CASE revenue PART 2A: Do a similar analysis as in Part 1 to analyze a new scenario where the equipment is fully depreciated in the first year. All other inputs remain the same. Re-calculate NPV, IRR and Payback period of the project. HINT: negative EBIT creates a tax credit

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