complete missing values on excel spread sheet based on the information provided

Capital Budgeting Decisions (Scenario 2) $ $ 7 8 1) Life Period of the Equipment = 4 years 8) Sales for first year (1) 2) New equipment cost $ (200,000) 9) Sales increase per year 3) Equipment ship & install cost (35,000) 10) Operating cost (60% of Sales) 4) Related start up cost (5,000) (as a percent of sales in Year 1) 5) Inventory increase 25,000 11) Depreciation (Full depreciation) 6) Accounts Payable increase 5,000 12) Marginal Corporate Tax Rate (T) 7 Equip. salvage value before tax $ 15,000 13) Cost of Capital (Discount Rate) 200,000 5% (120,000) 60% (240,000 21% 10% $ 10 Year Operations: VS 16 Revenue Operating Cost Depreciation EBIT 20 Taxes Net Income $ 200,000 $210,000 $220,500 $ 231,525 $ (120,000) $126,000 $ 132,300 $ 138,915 $ (240,000 $ $ (160,000) $ 84,000 $ 88,200 $ 92,610 $ (33,600) $ 17,640 $ 18,522 $ 19,448 $ (126,400) $ 66,360 $ 69,678 $ 73,162 $ 240,000 $ $ 113.600 $ 66.360 $ 69.678 $ 73,162 Add back Depreciation Total Operating Cash Flow ESTIMATING Initial Outlay (Cash Flow, CF0. T=0 CFO Year CF1 CF2 CF3 C F4 AL | DE 26 27 28 ESTIMATING Initial Outlay (Cash Flow, CFO, T=0 CFO CF1 CF2 CF3 CF4 20 Year 21 Investments: 22 1) Equipment cost 222) Shipping and Install cost 34 3) Start up expenses 35 Total Basis Cost (1+2+3) 264) Net Working Capital Increase in CA - Increase in CL Total Initial Outlay $(200,000) $ (35,000) $ (5,000) $(240,000) S889 $ (20,000) $(260.000) A Terminal: 1) Change in net WC 2) Salvage value (after tax) Total $ $ Salvage Value Before Tax (1-1) A 20,000 11,850 31,850 A Project Net Cash Flows $(260,000) $ 113,600 $ 66,360 $ 69,678 $ 105,012 NPV = IRR = Payback= TA Mb Sland Q#1 Impact of 2017 Tax Cut Act on Net Income, Cash Flows and Capital Budgeting (Investment ) Decisions Estimate NPV, IRR and Payback period of the project if equipment is fully depreciated in the first year and tax rate equals to 21% (b) Would you accept the project based on NPV and IRR? = c) Would you accept the project based on Payback rule if the project cut-off is 3 years? 9 Q#2 As a CFO of the firm, which of the Scenarios (1) or (2) would you choose? Why? SS SS RIR SENERE 8 + Sheet1 - Sheet2 Sheets Aa