C D Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Straight-Line #DIV/0! Enter the given values from the text book here Enter the given values from the text book here Base Case Best Case Unit sales Price per unit Variable cost per unit Fixed costs Best Case Solution Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense Net income Cash flow NPV Expected Case Solution Excel formula Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income roblem 2. Problem 2-2 Drahle D E Excel formula Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less: CAPEX less: Working capital investment Free cash flow NPV Worst Case Assuming the negative tax credit obtained here can used somewhere else or carried forward Solution Excel formula in previous column Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense Net income Cash flow NPV a Construct a spreadsheet model to compute free cash flow that relies on the following assumptions or estimates: Base Case Estimates Values Initial cost of equipment $1,000,000.00 Project and equipment life 10 years Salvage value of equipment SO Working capital requirement SO Depreciation method Straight-line Depreciation expense $100,000.00 Discount rate 10.00% Tax rate 34.00% Unit sales 10,000 Price per unit $125.00 Variable cost per unit $75.00 Fixed costs $250 annnn expected annual fee Casti IUW acker from Problem 3-1 is computed as follows: Revenues $1,250,000 Variable cost 750,000 Fixed expenses 250,000 Gross profit $ 250,000 Depreciation 100,000 Net operating income $ 150,000 Income tax expense 51,000 NOPAT $ 99,000 Plus depreciation 100,000 Less: CAPEX Less: working capital investment Free cash flow $ 199,000 C D Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Straight-Line #DIV/0! Enter the given values from the text book here Enter the given values from the text book here Base Case Best Case Unit sales Price per unit Variable cost per unit Fixed costs Best Case Solution Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense Net income Cash flow NPV Expected Case Solution Excel formula Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income roblem 2. Problem 2-2 Drahle D E Excel formula Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less: CAPEX less: Working capital investment Free cash flow NPV Worst Case Assuming the negative tax credit obtained here can used somewhere else or carried forward Solution Excel formula in previous column Revenues Variable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense Net income Cash flow NPV a Construct a spreadsheet model to compute free cash flow that relies on the following assumptions or estimates: Base Case Estimates Values Initial cost of equipment $1,000,000.00 Project and equipment life 10 years Salvage value of equipment SO Working capital requirement SO Depreciation method Straight-line Depreciation expense $100,000.00 Discount rate 10.00% Tax rate 34.00% Unit sales 10,000 Price per unit $125.00 Variable cost per unit $75.00 Fixed costs $250 annnn expected annual fee Casti IUW acker from Problem 3-1 is computed as follows: Revenues $1,250,000 Variable cost 750,000 Fixed expenses 250,000 Gross profit $ 250,000 Depreciation 100,000 Net operating income $ 150,000 Income tax expense 51,000 NOPAT $ 99,000 Plus depreciation 100,000 Less: CAPEX Less: working capital investment Free cash flow $ 199,000
