Budgeting KLMN a) Schedule presented correctly 10 points 4 pts each A company is determining whether or not to invest in new equipment in order to launch a new product The sales, cost, equipment purchase, and other data is presented Prepare the correct analysis format and answer to the various questions as indicated The correct schedule format is worth 10 points, with each answer correctly calculated worth 4 points b) Total cash outflow to start c) Total cash inflow for 5 years d) Met present value of investment e) Internal rate of return for investment 1) Profitability index for nvestment g) Should investor not? h) discount rate - 8%, invest? 1) NPV with discount rate Company decides to build new product line with sales and cost data as presented below. 562.000 28.010 444.470 500 808 340,550 500 308 325 530 Sales Operating expenses Purchase of equipment Installation Salvage value Discount rate cost of capital) 575.000 62 000 42.000 Financial Statements Master Budgeting Master Budgeting 2 Flexible Budgets Capital Budgeting Capital Budgeting 5) A company is determining wh ny is determining whether or not to invest in new equipment in order to launch a line. The sales, cost, equipment purchase, and other data is presented in the Excel the correct analysis format and answer to the various questions as indicated. The car format is worth 10 points, with each answer correctly calculated worth 4 points nt in order to launch a new product sented in the Excel worksheet. Prepare ons as indicated. The correct schedule b) Total cash outflow to start c) Total cash inflow for 5 years d) Net present value of investment e) Internal rate of return for investment f) Profitability index for investment g) Should invest or not? h) If discount rate = 8%, invest? i) NPV with 8% discount rate