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Attached is my project I have finished. I would like some help explaining the results of the numbers I got and any recommendation as stated
Attached is my project I have finished. I would like some help explaining the results of the numbers I got and any recommendation as stated in in the excel document. I would like the answer to apply to the numbers given in this spreadsheet.
Tax Rate 34% Before-tax Recapture of Asset Salvage Value Growth Rate - Revenues -5% Recapture of Working Captial Growth Rate - Costs 7% Year 1 demand for service = 20,000 Price 17,200 - * $75,000 $14.00 Year 1 units demanded 200 $100,000 P Revenues Project Year Annual Sales Demand 240,800 228,760 217,322 206,456 196,133 186,326 177,010 168,160 159,752 151,764 $240,800 $228,760 $217,322 $206,456 $196,133 $186,326 $177,010 $168,160 $159,752 $151,764 Cost Savings 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 Operating, Maintenance, & Insurance 50,000 53,500 57,245 61,252 65,540 70,128 75,037 80,289 85,909 91,923 Additional Computer Operating Costs 40,000 42,800 45,796 49,002 52,432 56,102 60,029 64,231 68,727 73,538 $100,000 $93,700 $86,959 $79,746 $72,028 $63,770 $54,934 $45,480 $35,363 $24,539 3 5 7 10 15 20 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45% 32.00% 24.49% 18.00% 9.50% 7.219% 3 14.81% 19.20% 17.49% 14.40% 8.55% 6.677% 4 7.41% 11.52% 12.49% 11.52% 7.70% 6.177% 5 11.52% 8.93% 9.22% 6.93% 5.713% 6 5.76% 8.92% 7.37% 6.23% 5.285% 7 8.93% 6.55% 5.90% 4.888% 8 4.46% 6.55% 5.90% 4.522% 9 6.56% 5.91% 4.462% 10 6.55% 5.90% 4.461% 11 3.28% 5.91% 4.462% 12 5.90% 4.461% 13 5.91% 4.462% 14 5.90% 4.461% 15 5.91% 4.462% 16 2.95% 4.461% Total Cash Inflows Costs Project Year Total Cash Outflows (net savings) MACRS Table Recovery Year 17 4.462% 18 4.461% 19 4.462% 20 4.461% 21 2.231% 22 23 24 25 26 27 28 29 30 31 32 33 34 35Step by Step Solution
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