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can you show me how to do this in excel where exactly everything should goes in cell. thank. you 14 P12-2 (Assume the annual calculated

can you show me how to do this in excel where exactly everything should goes in cell. thank. you
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14 P12-2 (Assume the annual calculated cash flows are equal all 10 years of the project) S Landcruisers Plus (UP) has operated an online retail store selling off-road trucks. As the name implies, the firm specializes in parts for the venerable 6 Toyota F340 that is know throughout the world for its durability and off-road prowess. The fact that Toyota stopped building and exporting the F40 to 7 the US market in 1982 meant that 40 owners depended more and more on re-manufactured parts to keep their beloved off-road vehides running More and more owners are replacing the original inline six cylinder engines with a modern American-built engine. The engine replacement 9 requires mating the new engine with the Toyota drive train. LP's owners had been offering engine adaptor kits for some time but have recently decided to begin building their own units. To make the adaptop kits 10 the firm would need to invest in a variety of machine tools costing a total of $700,000 11 LP's management estimates that they will be able to borrow $400,000 from the firm's bank and pay 8% interest. The remaining funds would have to be 12 supplied by LP's owners. 13 The firm estimates that they will be able to sell 1,000 units a year for $1,300 each. The units would cost $1,000 each in cash expenses to produce this does not include depreciation expense of $70,000 per year or interest expense of $32,000). After all expenses, the firm expects earnings before 15 Interest and taxes of 198,000. The firm pays taxes equal to 30%, which results in a net income of $138,600 per year over the 10 year expected life of 16 the equipment A (Part 1) What is the annual free cash flow LP should expect to receive from the investment in Year I assuming that it does not require any other 17 investments in either capital equipment or working capital and the equipment is depreciated over a 10 year life to o zero salvage and book value? 18 (Part 2) How Should the financing cost associated with the $400,000 loan be incorporated into the analysis of cash flow? 19 8. the firm's required rate of return for its investments is 10% and the investment has a 10 year expected fe, what is the antipated NPV of the 20 investment? 21 22 23 24 25 26 27 Inputs + 1700.000 1000 111,000 150,000 77 for how to understand 30 10N 22 inte 20 Cost of Mac 29 US Sale 11 in Cost Deprecation inter 34 Tate 25 ans 36 Bateau 37 38 Part II 39 Revenue 40 Cast of Good Sold 4 Cat a Dion a Opere am es OperatAT 45 Degreason 47 Opera Year 1 Year Years Year Yeart Year Year 10 Year $1.300.000 31.00 30.000 CON OOTS 43 parte SO Ag cap 5700.000 50 + sare 399932BRGRS33 190.000 51 Porta 25 61

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