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AutoSave D meet.google.com/ziv-ngzp-yqe David Li (Presenting) POZE PRO 1000(AH) lecture notes Saved to this PC Searc File Home insert Page Layout Formulas Data Review

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AutoSave D meet.google.com/ziv-ngzp-yqe David Li (Presenting) POZE PRO 1000(AH) lecture notes Saved to this PC Searc File Home insert Page Layout Formulas Data Review View Help X Cut Calibri 11 Copy 4 Paste B I U AA A- Wrap Text General Merge & Center - $ - % 9 589 Com Format Painter For Clipboard AP19 A Font S. B Alignment Number D E F AN 4 ABC Company is studying a project that would have a five year life and 5 require a $1,600,000 investment in the equipment. At the end of five years, the 6 project would terminate and the equipment would have no value left over. 7 The project would provide net income each year as follows: 8 Yr2020 Dec31, 2020. 9 Sales 10 Less COGS 11 Gross Margin 3,200,000 300,000 2,900,000 12 13 Less: Operating Expenses 14 Advertising and other fixed exp 1,200,000 15 Salary Expense 1,400,000 16 Amortization Expense 100,000 2,700,000 17 Total Expenses 18 19 20 Net Income 21 22 The company's discount (interest) rate is 25% 23 1) compute the net annual cash inflow from project 24 200,000 25 2) compute the net present value of the project. Is it acceptable? 26 W 43 44 45 46 Ready WZ-individual acc for lia, equi Accessibility: investigate W2-15 done demo in-class demonstration Wa Sheet2 Alsol A15 W 4:00 PM Nov17, 2023 Friday 14:30-16:30pm PROJ100... 6C Mostly cloudy

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