Required information The following information applies to the questions displayed below) Jefferson Company is a merchandiser located in western North Carolina. You serve on the company's capital budgeting review commitee whose purpose is to evaluate al capital investment proposals and then provide an accept or reject" recommendation to the CEO. Recently, your committee provided a "reject recommendation on a specific proposal based on the following net present value analysis (NPV) 2 herren Wor Athree Word 1 2 $ 0.00 $ 100.000 $10.00 $0.00 $ 120.000 $ 120.000 $ 40.000 S 100.000 65.000 0.7.2005 120.000 5 120.000 $ 0.000 $285.000 DO . DES 6570 04:23 5.000 100.000 ES 4 S 1742 $ DON Tech . 10 P T! Net prevent The group of employees that submitted this request is disappointed that you provided a "reject recommendation for its proposal The group does not understand why working capital is treated as a $100.000 cash outflow now and a $100,000 cash inflow at the end of the project. To explain your accounting for working capital in the NPV analysis shown above, you decide to proceed in two steps. First, you will explain how to calculate the annual opportunity costs that arise from tying up $100,000 of working capital for four years. Second, you will create a data visualization that summarizes these calculations. Download the Excel file wich you will use to create the Tableau visualization that aid your explanation Upload the Excel file into Tableau by doing the following 1 Open the Tableau Desktop application 2 on the left-hand side, under the Connect header and the "To a fie sub-header click on "Microsoft Excel 3. Choose the Excel file and click "Open" 4. Since the only worksheet in the Excel File is "Calloway Company wil default as a selection with no further import steps needed Assume the company's discount rate of 20% (as shown in cel A9 of the above Excel screen capture) represents its opportunity cost of capital In other words, it represents the annual return that the company could earn it is invested $100.000 in an alternative capital budgeting proposal, rather than committing it to this project's working capital needs. Required: 10. Without considering the time value of money, how much return could Jefferson earn each of the next four years by investing 1b. Considering the time value of money (and using the discount factors for years 1-4 as shown in the above Excel screen capture). What is the present value of the annual opportunity costs from requirement ? You 2 Yaa Ya 3 11,5743 0.045 1 Annual opportunity cost undiscounted) Present value of annual opportunity cost $ 16.687 5 Required information The following information applies to the questions displayed below) Jefferson Company is a merchandiser located in western North Carolina. You serve on the company's capital budgeting review commitee whose purpose is to evaluate al capital investment proposals and then provide an accept or reject" recommendation to the CEO. Recently, your committee provided a "reject recommendation on a specific proposal based on the following net present value analysis (NPV) 2 herren Wor Athree Word 1 2 $ 0.00 $ 100.000 $10.00 $0.00 $ 120.000 $ 120.000 $ 40.000 S 100.000 65.000 0.7.2005 120.000 5 120.000 $ 0.000 $285.000 DO . DES 6570 04:23 5.000 100.000 ES 4 S 1742 $ DON Tech . 10 P T! Net prevent The group of employees that submitted this request is disappointed that you provided a "reject recommendation for its proposal The group does not understand why working capital is treated as a $100.000 cash outflow now and a $100,000 cash inflow at the end of the project. To explain your accounting for working capital in the NPV analysis shown above, you decide to proceed in two steps. First, you will explain how to calculate the annual opportunity costs that arise from tying up $100,000 of working capital for four years. Second, you will create a data visualization that summarizes these calculations. Download the Excel file wich you will use to create the Tableau visualization that aid your explanation Upload the Excel file into Tableau by doing the following 1 Open the Tableau Desktop application 2 on the left-hand side, under the Connect header and the "To a fie sub-header click on "Microsoft Excel 3. Choose the Excel file and click "Open" 4. Since the only worksheet in the Excel File is "Calloway Company wil default as a selection with no further import steps needed Assume the company's discount rate of 20% (as shown in cel A9 of the above Excel screen capture) represents its opportunity cost of capital In other words, it represents the annual return that the company could earn it is invested $100.000 in an alternative capital budgeting proposal, rather than committing it to this project's working capital needs. Required: 10. Without considering the time value of money, how much return could Jefferson earn each of the next four years by investing 1b. Considering the time value of money (and using the discount factors for years 1-4 as shown in the above Excel screen capture). What is the present value of the annual opportunity costs from requirement ? You 2 Yaa Ya 3 11,5743 0.045 1 Annual opportunity cost undiscounted) Present value of annual opportunity cost $ 16.687 5
