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can you please show me how to do this in excel with the cell showing how you did this, please not a write discription im
can you please show me how to do this in excel with the cell showing how you did this, please not a write discription im a visual learner. thank you so much.
this a clear image
P12.15 Modified (use the template below for problem setup including the negative synergistic effects added at the end of the problem) You we considering adding new elliptical trainers to your firm's product line of fitness equipment, and you feel you can sell 7.500 of these per year for five years ter which time this project is expected to shut down when it is learned that being it is unhealthyl. Each elliptical trainer would have variable costs of $and sell for $1.200; annual fed costs associated with production would be $1,425,000. In addition, there would be a $7,500,000 initial expenditure associated with the purchase of new production equipment. It sumed that the implified straight line method would be used to deprecate this initial expenditure down to ever five years. This project will also require a one-timental investment of $1,500,000 in networking capital associated with inventory, and this working capital investment will be recovered when the project is shut down. Finally, the firm's marginal tax rate is 24 percent. Additionally, the introduction of the new elliptical trainers will have a negative impact on the sales of their existing elliptical trainers by 750 units ach year. These existing trainers have a unit ales price of $900 and a variable unit cost of $500 7 8 9 10 11 a. What is the initial cash outloy solated with this project? What are the annual net cash flow associated with this project for years 147 - What is the terminal cash flow in years that it, whor las the free cash flow in mor s plus any additional cash flow asociated with the termination of the project d. What is the projects NPV piven required role of turn? 13 14 15 16 17 10 19 20 21 22 23 24 25 26 27 INPUTS in Blue): Tax Rate Required Rate of Return Year Cost of the New Equipment Initial Working Capital 22 INPUTS 11 Toate 24 Bured Rateban 25 TE 38 Cast of the Net I Won Capital 28 Art 29 unit Sales Price 30 Martable.com 11 AB Beforedling all 33 Line Unit Sales 34 Ut Vandet 35 30 Te 32 18 Sale Price 3 CE 40 Enne Vatt nulla Cat 40 Deprecate 0 -- Splet Operating Cash Sale Variables 51 33 14 55 Ver ta Depreciate Net Opening LT Ogos Der OD 37 58 59 60 Step 2:Calculate Working Capital (WC) Requirements Working Capital Requirements Step 3: Calculate Capital Expenditure (CAPEX) Requirements Capital Expenditure (CAPEX Requirements Step 4: Calculate Free Cash Flow Free Cash Flow 3 14 65 GG 67 EB 6S 70 71 72 73 74 75 76 77 78 19 50 1 83 84 85 GA P12-16M Ready P12-15 Modified (use the template below for problem setup including the negative synergistic effects added at the end of the problem) You are considering adding new elliptical trainers to your firm's product line of fitness equipment, and you feel you can sel 7,500 of these per year for five years after which time this project is expected to shut down when it is learned that being fit is unhealthy). Each eliptical trainer would have variable costs of $650 and sell for $1.200, annual fixed costs associated with production would be $1,425,000 in addition, there would be a $7.500.000 initial expenditure associated with the purchase of new production equipment. It is assumed that the simplified straight line method would be used to depreciate this initial expenditure down to zero over five years. This project will also require a one-time in investment of $1,500,000 in net working capital associated with inventory, and this working capital investment will 0 be recovered when the project is shut down. Finally, the firm's marginal tax rate is 24 percent. Additionally, the introduction of the new elliptical trainers will have a nepative impact on the sales of their existing elliptical trainers by 750 units each year. These existing 2 trainers have a unit sales price of $900 and a variable unit cost of $500 13 24 Q. What is the initial cash outlay associated with this project? 15 b. What are the annual net cash flows associated with this project for years 1-47 16 What is the terminal cash flow in year 5 (that is what is the free cash flow in years plus any additional cash flows associated with the termination of the project 17 d. What is the projects NPV given a 9N required rate of rewn? 19 20 10 21 22 23 24 25 INPUTS (in Blue Tax Rate Required Rate of Return Years Cost of the New Equipment Initial Working Capital 27 Formatting as Table Styles Delete Open recovered workbooks Your recent changes were saved. Do you want to continue working where you left off? 138 0 INPUTS Bule Taxe Required Rate of Return Yean Cost of the New Equipment It Working Capital Annual Units Sold Twit Sales Price Variable cost per unit Annual feed cost Reduced Existint Units Annual Existing Unit Sales Price Existing Unit Variable cost Vest 0 2 3 4 5 Units Sold Un Sale Price Variable Cost/Unit Reduced Existing Unit Existing und Sales Price Festing Unit Variable cout Amal Feed Cost Depreciation Rate 1 2 36 Step 1: Calculate Net Operating Cash Flows 17 Sales Revenue Variable costs 9 Sales Resting 50 Variable costs - 1 hd costs 52 Depreciation 3 Net Operating income 54 Len Takes ss Operating income after takes 56 Pha i ti 57 One Cash Flow Instruction & Questions 012-11 Ready 012-15 P12-16 P12-15M + MacBook Pro 56 Depreciation 57 Operating Cash Flow S8 50 Stap 1: Calculate Working Capital Requirements 60 Working Capital (WC) Requirements 61 62 Step Calculate Capital Expenditure (CAPEX) Requirements Capital Expenditure (CAPEX) Requirements 64 65 Step 4: Calculate Free Cash Flow 66 Free Cash Flow G7 68 G 70 71 72 73 74 75 76 77 78 78 80 EL ES 86 17 QUE 012-11 Q12:15 P12:14M P12-15M Ready MacBook Pro esc 10 D . Ny @ * # $ & XL G P12-15 Modified (use the template below for problem setup including the negative synergistic effects added at the end of the problem) You are considering adding new eliptical trainers to your firm's product line of fitness equipment, and you feel you can sell 7,500 of these per year for five years after which time this project is expected to shut down when it is learned that being fit is unhealthy). Each elliptical trainer would have variable costs of $650 and sell for $1,200, annual fixed costs associated with production would be $1,425,000 in addition, there would be a $7,500,000 initial expenditure associated with the purchase of new production equipment. It is assumed that the Simplified straight-line method would be used to depreciate this initial expenditure down to zero over five years. This project will also require a one-time initial investment of $1,500,000 in net working capital associated with Inventory, and this working capital investment will be recovered when the project is shut down. Finally, the firm's marginal tax rate is 24 percent. Additionally, the introduction of the new elliptical trainers will have a negative impact on the sales of their existing elliptical trainers by 750 units each year. These existing trainers have a unit sales price of $900 and a variable unit cost of $500. a. What is the initial cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years 1-4? c. What is the terminal cash flow in year 5 (that is, what is the free cash flow in year 5 plus any additional cash flows associated with the termination of the project?) d. What is the projects NPV given a 9% required rate of return? INPUTS in Blues Step by Step Solution
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