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Can anyone do this on excel? Roger and Serena, tennis consultants want to purchase a new tennis ball machine. The machine would record clients hitting
Can anyone do this on excel?
Roger and Serena, tennis consultants want to purchase a new tennis ball machine. The machine would record clients hitting tennis balls and measure the speed of their strokes, spins, etc. Roger and Serena would then advise clients regarding steps to improve. They have procured three bids for a new system. But as their skills relate more to forehands, they are confused about which to accept. They have hired the USF Managerial Accounting class to look at the proposals and make a recommendation to them. They think all the systems would have a useful life of 5 years. (a) Annual maintenance costs for Proposal B escalate 20\% per year due to complexity of system. Roger and Serena can bill consulting hours at $400 per hour. This represents their revenues. REQUIRED: 1. Compute the net present value and IRR of each proposal with a discount rate of 8%. 2. Compute the payback of each. 3. Which project would you recommend and why? This is your conclusion. The conclusion should be included on the "Input" tab. 4. Include a summary as follows (in input/summary tab): SUMMARY A B C NPV IRR Payback The numbers on the summary table should be linked from your calculations. HINTS 1. Set up your Excel spreadsheet with 3 tabs - Input and conclusion (be sure to include the summary table) - Net present value and IRR - Payback Roger and Serena, tennis consultants want to purchase a new tennis ball machine. The machine would record clients hitting tennis balls and measure the speed of their strokes, spins, etc. Roger and Serena would then advise clients regarding steps to improve. They have procured three bids for a new system. But as their skills relate more to forehands, they are confused about which to accept. They have hired the USF Managerial Accounting class to look at the proposals and make a recommendation to them. They think all the systems would have a useful life of 5 years. (a) Annual maintenance costs for Proposal B escalate 20\% per year due to complexity of system. Roger and Serena can bill consulting hours at $400 per hour. This represents their revenues. REQUIRED: 1. Compute the net present value and IRR of each proposal with a discount rate of 8%. 2. Compute the payback of each. 3. Which project would you recommend and why? This is your conclusion. The conclusion should be included on the "Input" tab. 4. Include a summary as follows (in input/summary tab): SUMMARY A B C NPV IRR Payback The numbers on the summary table should be linked from your calculations. HINTS 1. Set up your Excel spreadsheet with 3 tabs - Input and conclusion (be sure to include the summary table) - Net present value and IRR - Payback Step by Step Solution
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