Compute the net present value of the investment Compute the profitability index, rounded to two decimal places. \begin{tabular}{|r|l|} \hline Present value of net eash flows & \\ \hline Divided by cost of asset & \\ \hline Profitability index & \\ \hline \end{tabular} \begin{tabular}{|r|l|} \hline Present value of net cash flows & \\ \hline Divided by cost of asset & \\ \hline Profitability index & \\ \hline \end{tabular} Optional Would you recommend this investment? Why or why not? Optional Compute the internal rate of return of the investment using Excel's IRR function. Display to two decimal places, but do not round. \begin{tabular}{|l|l|} \hline Cash Flow Year 0 (Cost) & \\ \hline Cash Flow Year 1 & \\ \hline Cash Flow Year 2 & \\ \hline Cash Flow Year 3 & \\ \hline Cash Flow Year 4 (included proceeds from sale) \\ \hline \multicolumn{2}{|c|}{} \\ \hline \multicolumn{2}{|c|}{ IRR } \\ \hline \end{tabular} Note: IRR requires a negative amount for the investment. Note: IRR requires a negative amount for the investment. Optional Proof of IRR \begin{tabular}{|c|r|r|r|r|r|r|r|r|} \hline Present value of 1$ & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hlineN=1 & 0,9520 & 0,9430 & 0,9350 & 0,9260 & 0,9170 & 0,9090 & 0,9010 & 0,8930 \\ \hlineN= & 0,9070 & 0,8900 & 0,8730 & 0,8570 & 0,8420 & 0,8260 & 0,8120 & 0,7970 \\ \hlineN= & 0,8640 & 0,8400 & 0,8160 & 0,7940 & 0,7720 & 0,7510 & 0,7310 & 0,7120 \\ \hlineN=4 & 0,8230 & 0,7920 & 0,7630 & 0,7350 & 0,7080 & 0,6830 & 0,6590 & 0,6360 \\ \hlineN= & 0,7840 & 0,7470 & 0,7130 & 0,6810 & 0,6500 & 0,6210 & 0,5930 & 0,5670 \\ \hlineN= & 0,7460 & 0,7050 & 0,6660 & 0,6300 & 0,5960 & 0,5640 & 0,5350 & 0,5070 \\ \hlineN=7 & 0,7110 & 0,6650 & 0,6230 & 0,5830 & 0,5470 & 0,5130 & 0,4820 & 0,4520 \\ \hlineN=8 & 0,6770 & 0,6270 & 0,5820 & 0,5400 & 0,5020 & 0,4670 & 0,4340 & 0,4040 \\ \hlineN=9 & 0,6450 & 0,5920 & 0,5440 & 0,5000 & 0,4600 & 0,4240 & 0,3910 & 0,3610 \\ \hline \end{tabular} Prepared for Sung Kim of Independent Forklift Payback period, accounting rate of return, and net present value. Talk Radio Option F USING EXCEL OR OTHER SPREADSHEET, EVERYTHING BELOW THIS LINE SHOULD BE FORMULAS Prepared for Sung Kim of Independent Forklift Payback period, accounting rate of return, and net present value. Used Oil Burner Option \begin{tabular}{|l|r|} \hline Hurdle rate & 14,0% \\ \hline Useful (project) life & 4 \\ \hline Residual value & 6.000 \\ \hline Investment & 20.000 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Net cash inflows from operations } \\ \hline Cash Flow Year 1 & 7.500 \\ \hline Cash Flow Year 2 & 7.500 \\ \hline Cash Flow Year 3 & 7.500 \\ \hline Cash Flow Year 4 & 7.500 \\ \hline \end{tabular} Initial investment Cash flow year 1 Amount left to recapture Cash flow year 2 Amount left to recapture Cash flow year 3 Amount left to recapture Cash flow year 4 Amount left to recapture Payback = years Annual net operating cash flows does not include original investment or residual value Depreciation Net accounting income Divided by project life Average annual accounting income Beginning investment book value (cost) Ending investment book value (cost - total depreciation) 312 Compute the Accounting Rate of Return (a) compute average annual accounting income Annual net operating cash flows does not include original investment or residual value Depreciation Net accounting income Divided by project life Average annual accounting income (b) compute average amount invested Beginning investment book value (cost) Ending investment book value (cost-total depreciation) Divided by Average amount invested (c) compute ARR 3 Compute the net present value of the investment 4 Compute the profitability index, rounded to two decimal places. \begin{tabular}{|r|} \hline Present value of net cash flows \\ \hline Divided by cost of asset \\ \hline Profitability index \\ \hline \end{tabular} Annual net operating cash flows Depreciation Net accounting income Divided by project life Average annual accounting income \begin{tabular}{ll} Beginning investment book value & (cost) \\ \hline Ending investment book value & (cost-total depreciation) \end{tabular} Divided by Average amount invested \begin{tabular}{|c|c|} \hline Period & \multicolumn{1}{|c|}{ Cash Flows } \\ \hline 2 & \\ \hline Present value of net cash flows \\ \hline Cost of Asset \\ \hline Net Present Value @ \\ \hline \end{tabular} Would yourecommend this investment? Why er why not? Optional Compute the net present velue of the inventmant uving Diefy NPV function includes proceeds from ale \begin{tabular}{|r|r|} \hline Hurdie rate \\ \hline Present valut of net cash flowi & \\ \hline Cost of asset \\ \hline Net Present Value \\ \hline \end{tabular} Optional Compute the iffernal rate of return of the imetament using Eacel's ling function. Display to tavo decimal places, but do not round Opriths Compute the net present value of the investment Compute the profitability index, rounded to two decimal places. \begin{tabular}{|r|l|} \hline Present value of net eash flows & \\ \hline Divided by cost of asset & \\ \hline Profitability index & \\ \hline \end{tabular} \begin{tabular}{|r|l|} \hline Present value of net cash flows & \\ \hline Divided by cost of asset & \\ \hline Profitability index & \\ \hline \end{tabular} Optional Would you recommend this investment? Why or why not? Optional Compute the internal rate of return of the investment using Excel's IRR function. Display to two decimal places, but do not round. \begin{tabular}{|l|l|} \hline Cash Flow Year 0 (Cost) & \\ \hline Cash Flow Year 1 & \\ \hline Cash Flow Year 2 & \\ \hline Cash Flow Year 3 & \\ \hline Cash Flow Year 4 (included proceeds from sale) \\ \hline \multicolumn{2}{|c|}{} \\ \hline \multicolumn{2}{|c|}{ IRR } \\ \hline \end{tabular} Note: IRR requires a negative amount for the investment. Note: IRR requires a negative amount for the investment. Optional Proof of IRR \begin{tabular}{|c|r|r|r|r|r|r|r|r|} \hline Present value of 1$ & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hlineN=1 & 0,9520 & 0,9430 & 0,9350 & 0,9260 & 0,9170 & 0,9090 & 0,9010 & 0,8930 \\ \hlineN= & 0,9070 & 0,8900 & 0,8730 & 0,8570 & 0,8420 & 0,8260 & 0,8120 & 0,7970 \\ \hlineN= & 0,8640 & 0,8400 & 0,8160 & 0,7940 & 0,7720 & 0,7510 & 0,7310 & 0,7120 \\ \hlineN=4 & 0,8230 & 0,7920 & 0,7630 & 0,7350 & 0,7080 & 0,6830 & 0,6590 & 0,6360 \\ \hlineN= & 0,7840 & 0,7470 & 0,7130 & 0,6810 & 0,6500 & 0,6210 & 0,5930 & 0,5670 \\ \hlineN= & 0,7460 & 0,7050 & 0,6660 & 0,6300 & 0,5960 & 0,5640 & 0,5350 & 0,5070 \\ \hlineN=7 & 0,7110 & 0,6650 & 0,6230 & 0,5830 & 0,5470 & 0,5130 & 0,4820 & 0,4520 \\ \hlineN=8 & 0,6770 & 0,6270 & 0,5820 & 0,5400 & 0,5020 & 0,4670 & 0,4340 & 0,4040 \\ \hlineN=9 & 0,6450 & 0,5920 & 0,5440 & 0,5000 & 0,4600 & 0,4240 & 0,3910 & 0,3610 \\ \hline \end{tabular} Prepared for Sung Kim of Independent Forklift Payback period, accounting rate of return, and net present value. Talk Radio Option F USING EXCEL OR OTHER SPREADSHEET, EVERYTHING BELOW THIS LINE SHOULD BE FORMULAS Prepared for Sung Kim of Independent Forklift Payback period, accounting rate of return, and net present value. Used Oil Burner Option \begin{tabular}{|l|r|} \hline Hurdle rate & 14,0% \\ \hline Useful (project) life & 4 \\ \hline Residual value & 6.000 \\ \hline Investment & 20.000 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Net cash inflows from operations } \\ \hline Cash Flow Year 1 & 7.500 \\ \hline Cash Flow Year 2 & 7.500 \\ \hline Cash Flow Year 3 & 7.500 \\ \hline Cash Flow Year 4 & 7.500 \\ \hline \end{tabular} Initial investment Cash flow year 1 Amount left to recapture Cash flow year 2 Amount left to recapture Cash flow year 3 Amount left to recapture Cash flow year 4 Amount left to recapture Payback = years Annual net operating cash flows does not include original investment or residual value Depreciation Net accounting income Divided by project life Average annual accounting income Beginning investment book value (cost) Ending investment book value (cost - total depreciation) 312 Compute the Accounting Rate of Return (a) compute average annual accounting income Annual net operating cash flows does not include original investment or residual value Depreciation Net accounting income Divided by project life Average annual accounting income (b) compute average amount invested Beginning investment book value (cost) Ending investment book value (cost-total depreciation) Divided by Average amount invested (c) compute ARR 3 Compute the net present value of the investment 4 Compute the profitability index, rounded to two decimal places. \begin{tabular}{|r|} \hline Present value of net cash flows \\ \hline Divided by cost of asset \\ \hline Profitability index \\ \hline \end{tabular} Annual net operating cash flows Depreciation Net accounting income Divided by project life Average annual accounting income \begin{tabular}{ll} Beginning investment book value & (cost) \\ \hline Ending investment book value & (cost-total depreciation) \end{tabular} Divided by Average amount invested \begin{tabular}{|c|c|} \hline Period & \multicolumn{1}{|c|}{ Cash Flows } \\ \hline 2 & \\ \hline Present value of net cash flows \\ \hline Cost of Asset \\ \hline Net Present Value @ \\ \hline \end{tabular} Would yourecommend this investment? Why er why not? Optional Compute the net present velue of the inventmant uving Diefy NPV function includes proceeds from ale \begin{tabular}{|r|r|} \hline Hurdie rate \\ \hline Present valut of net cash flowi & \\ \hline Cost of asset \\ \hline Net Present Value \\ \hline \end{tabular} Optional Compute the iffernal rate of return of the imetament using Eacel's ling function. Display to tavo decimal places, but do not round Opriths