Can you help me with this case study - Guillermon using the three capital evaluation techniques? I dont know how do the calculations portion for each technique please.

A) Internal Rate of Return IRR

B) Net Present Value, or NPV

C) Payback Period

Enter the name of the team leader for this assignment in cell A3 of the Income Information tab in the Guillermo Furniture Data Sheets. This will create a unique set of numbers for your team to analyze. Every member of your team needs to enter the same name in exactly the same way so the resulting data will be the same for each team member. Changes can be made to any of the data on the data sheet, but all changes should be documented/explained within that file. The final version of the file used in the analysis needs to be submitted with the paper. Additional worksheets can be added in the file as needed to support the analysis.

Differentiate among at least three capital budget evaluation techniques. Differentiation includes how the technique is computed, how the results are evaluated, what the technique measures, etc.

Explain how these different techniques would help the team make its recommendation to Guillermo.

Recommend a course of action (i.e., which alternative Guillermo should choose) based on at least one of the capital budget evaluation techniques discussed. Be sure to apply the technique(s) to all alternatives being considered and include present value calculations as part of the recommendation. Any amounts included in the paper must be supported by relevant computations from the Guillermo Data Sheets as explained above.

Submit both your paper and Data Sheets as well as any other supporting files for grading. The body of the paper should be no more than 1,100 words but should be at least 750 words. Be sure the paper complies with APA standards; no abstract is required. This is to be a formal paper, so only third person is acceptable. This paper will require the use of sources, at a minimum the Guillermo Furniture Scenario, the Guillermo Date Sheets, and the textbook. Be sure to properly cite any sources used and include a properly formatted Reference page.

Income statement

Setup Information - Income Statement
Lisalynn Pascua			0.08
Peso? (1=Yes)	0		1.00	10.814 Mexican Pesos = 1.000 US Dollars
	Current	Hi-Tech (Machines Needed)	Broker (Distributor)
Production
Mid-Grade	2,593.00	3,890.00	3,890.00	Production can be increased by 50% and the broker also anticipates that same level
High-End	519.00	779.00	779.00	Production can be increased by 50%
Direct Materials ($)/Unit
Mid-Grade	140.00	140.00		There are no material costs for brokered units
High-End	250.00	250.00	250.00
Direct Labor ($/HR)/Unit	15.00	40.00	40.00	The labor rate is increased due to the technical skill level of operators
Labor Time (Hrs)/Unit
Mid-Grade	20.00	4.00		There are no labor times for brokered units and production times are 20% of original times
High-End	30.00	4.00	4.00	Production times are now equal to the mid-grade level
Direct Cost/Unit
Mid-Grade	440.00	300.00	360.00	The Broker cost for Mid-Grade is based on net FOB destination including shipping/tariffs
High-End	700.00	410.00	410.00
Price/Unit
Mid-Grade	509.00	459.00	459.00	Prices are reduced by 10% because supply is increased
High-End	879.00	789.00	789.00	Prices are reduced by 10% because supply is increased
Plant Overhead/Yr
Wages	50,000	95,000	95,000	Need to add a 45,000 a year maintenance position for the equipment
Utilities	9,000	27,000	4,505	Utilities are expected to be 3 x's current at full production (150% above current levels) based on units produced
Benefits	106,145	84,204	21,964	Benefits are 10% of all wages (including direct labor)
Insurance	3,000	15,000	15,000	Insurance will increase by 12,000 with the addition of the equipment and building expansion
Property Taxes	975	3,900	3,900	Property taxes are 6.5%, assessment is 1% of original value, and that is on all plant/equipment
Depreciation	50,000	466,667	466,667	Buildings are at 30 years and Equipment is at 10 years, straight line
Supplies	6,000	6,000	6,000	Supply expense is miscellaneous and does not vary
Income Tax Expense	19,613	90,712	28,273	Taxes are 42% of Net Income
	271,818	913,751	680,351	Net Margins
	225,120	697,771	613,035	Overhead
	46,698	215,980	67,316	Net Income before taxes

Assets, Liabilities & Equity Information

12/31/2014

12/31/2015

Cash

$ 120,872

USD

$ 168,329

USD

Accounts Receivable

206,184

210,392

DSO = 45 days

Sales growth has slowed to 1%

Inventory

121,591

125,352

The plant completes all work-in-process before year end inventory

Inflation is running at 3%

Pre-paid Insurance

1,250

1,500

1/2 a year pre-paid

TOTAL CURRENT ASSETS

$ 449,897

USD

$ 505,573

USD

Buildings

1,500,000

1,500,000

Less: Accumulated Depreciation

(600,000)

(650,000)

Current Building has been in use for 13 years

Equipment

50,000

50,000

Less: Accumulated Depreciation

(50,000)

(50,000)

Equipment fully depreciated several years ago

TOTAL ASSETS

$1,349,897

USD

$1,355,573

USD

Accounts Payable

$ 81,823

USD

$ 84,353

USD

A/P represents 2 months of purchases & 1 month of bills & Prop Tax

Income Taxes Payable

18,633

19,613

All timing issues wash out (for simplicity)

Wages Payable

42,016

44,227

Wages are two weeks

Current Portion of Notes Payable

27,132

29,238

TOTAL CURRENT LIABILITIES

$ 169,603

USD

$ 177,432

USD

Mortgage Note Payable

965,867

936,628

Building was financed Jan 1, 12 years ago at 7.5% and 80% LTV

TOTAL LIABILITIES

$1,135,470

USD

$1,114,060

USD

Common Stock

$ 10,000

USD

$ 10,000

USD

No Par Value 10,000 shares

Retained Earnings

204,428

231,513

TOTAL EQUITY

$ 214,428

USD

$ 241,513

USD

TOTAL LIABILITIES & EQUITY

$1,349,897

USD

$1,355,573

USD

Production Data
Direct Cost	Total	Wood	Materials	Foam	Chem A	Chem B	Chem C
Flame Retardent (per liter)	2.00				1.50	0.50
Coating (per liter)	25.00				7.50	2.50	15.00
Mid-Grade (per unit)	140.00	80.00	40.00	20.00
High-End (per unit)	250.00	160.00	60.00	30.00
Alternative Coating (per liter)	27.50
Market Price of Flame Retardent (per liter)	10.00
Liters of Flame retardent per year	62
Liters of Coating per year	311
Plant Capacity
Flame Retardent	187
Coating	467
Mid-Grade	5,186
High-End	1,038