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calculate the net present value of the windmill venture by completing the table. i will need step by step explanatiion plus answer thanks. Qulxotic Enterprises

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calculate the net present value of the windmill venture by completing the table.

i will need step by step explanatiion plus answer thanks.

Qulxotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst, once again will examine the vlability of this venture after 31 fallures. A number of windmills are to be constructed on the southern frontler to generate electricity. They will cost $305,000 and will last 9 years, at which time they will have an estimated salvage value of $22,000. However, a capital upgrade of $109,000 will be required at the end of five years. An Inventory of spare parts (working capital) amounung to $9.000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Quixouc's previous ventures. The warehouse could be rented out at $5,000 per year. This enterprise is expected to generate cash from the sale of electricity of $142.000 a year for 9 years. Cash expenses for each of the 9 years will be $11,000. The company's tax rate is 24 percent, the CCA rate is 7 percent and the cost of capital is 24 percent Requirements A. Calculate the Net Present Value of the Windmill venture by completing the table below. You need a number for every cell in this spreadsheet) Event Expected Cash Flow After-tax Cash Flow Present Value Enter cash recepts as positive numbers, cash payments as negative numbers. Round all your answers to zero decimal places Inital Investment Working Capital Revenues Expenses Opportunity Cost Capital Upgrade Salvage Working Capital Revcovery CCA Tax Shield NA NA Net present value B. It's not worth any marks, but it helps with the marking: what number did you use for (Cov - Spv? Enter your answer as a positive number) Qulxotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst, once again will examine the vlability of this venture after 31 fallures. A number of windmills are to be constructed on the southern frontler to generate electricity. They will cost $305,000 and will last 9 years, at which time they will have an estimated salvage value of $22,000. However, a capital upgrade of $109,000 will be required at the end of five years. An Inventory of spare parts (working capital) amounung to $9.000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Quixouc's previous ventures. The warehouse could be rented out at $5,000 per year. This enterprise is expected to generate cash from the sale of electricity of $142.000 a year for 9 years. Cash expenses for each of the 9 years will be $11,000. The company's tax rate is 24 percent, the CCA rate is 7 percent and the cost of capital is 24 percent Requirements A. Calculate the Net Present Value of the Windmill venture by completing the table below. You need a number for every cell in this spreadsheet) Event Expected Cash Flow After-tax Cash Flow Present Value Enter cash recepts as positive numbers, cash payments as negative numbers. Round all your answers to zero decimal places Inital Investment Working Capital Revenues Expenses Opportunity Cost Capital Upgrade Salvage Working Capital Revcovery CCA Tax Shield NA NA Net present value B. It's not worth any marks, but it helps with the marking: what number did you use for (Cov - Spv? Enter your answer as a positive number)

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