B $35,000.00 $25,000.00 $165,000.00 $10,000.00 $30,000.00 $20,000.00 $40,000.00 $46,250.00 4 $20,000.00 1,250 $100.00 $200.00 40.00% 10.00% 7% 3% 1 A11V 2 Index 3 Value Drivers 4 Lease opportunity 5 Loss in other lines 6 Purchase costs 7 Shipping 8 Installment costs 9 Useful life (years) 10 Salvage value 11 Resale value 12 Depreciation 13 Age at resale 14 Book value 15 Expected sales (units) 16 Variable costs (per unit) 17 Revenues (per unit) 18 Tax rate 19 Cost of capital 20 ONWC (% of revenues) 21 Inflation 22 23 DCF Model 24 Do you wish to exclude year 4? No 25 26 Years 0 27 Revenues 28 Missed revenues 29 Expenses 30 Depreciation 31 Incremental EBIT 32 Taxes 33 Net Earnings 34 Depreciation 35 ONWC 36 Change in ONWC 37 CapEx 38 FCF 39 NPV 40 IRR 8 6 6 6 8 8 $0 $0 $0 $0 $18,025 $18,025 $205,000 -$223,025 $10,643 11.95% C D E F 1 2 3 4 $257,500 $265,225 $273,182 $281,377 -$60,000 -$60,000 $60,000 -$60,000 $128,750 $132,513 $136,591 $140,689 $45,250 $46,250 $45,250 $46,250 $26,363 $30,341 $34,439 $22,500 $9,000 $13,500 $10,545 $12,136 $13,775 $15,818 $18,205 $20,663 $46,250 $46,250 $46,250 $46,250 $18,566 $19,123 $19,696 $0 $541 $557 $574 -$19,595 $0 $0 $0 -$32,000 $59,209 $61,511 $63,881 $118,610 1 A11Y 2 Index 3 Feel free to update the following information: Purchase cost of the new machine ONWC (% of revenues) $165,000 7% Cost of capital 10% 8 According to the new information: the project's NPV is now $10,643.29 the project's IRR is now 11.95% 11 This chart tracks the effects on projected FCFS 12 Projected Free Cash Flows 5150,000 $100,000 $50,000 50 1 2 -$50,000 -$100,000 -$150,000 -$200,000 -$250,000 Years 360002=222852332588852332522 10 16 24 27 29 31 34 37 39 C 3 D E On the above picture, the dashboard on the right provides the user with a final NPV (in cell B9). You are responsible for establishing the necessary connection bewteen Dashboard and Model so that the user sees the correct NPV value. Which of the following Excel formulas identifies the correct connection? O Cell Model!B39 should read: Dashboard! B9 O Cell Dashboard!B10 should read: -Model!B39 O Cell Dashboard! B9 should read: -Model!B39 O Cell Dashboard! B9 should read: Model!A39 O Cell Model!A39 should read: -Dashboard! B9