Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. A company is investigating the feasibility of purchasing a machine at the present time for $200,000. The following information pertains to the acquisition and use of the machine over the next five years: In year one the cash revenues generated by the machine are expected to be $76,000, and these revenues are expected to increase by 6% year-over-year in each of the remaining 4 years that they own the machine. The machine is expected to be sold at the end of 5 years for its estimated salvage value of $20,000. Expenses directly associated with the generation of the annual revenues noted above are expected to be 65% of the revenues in year one, 64% of the revenues in year two, 63% of the revenues in year three, 62% of the revenues in year four, and 61% of the revenues in year five. And these expenses include an annual depreciation expense of one-fifth of the cost (minus the salvage value) of the asset each year for the 5 years that the asset is held. The machine will require a major overhaul costing $40,000 at the end of year three. Prepare a cash flow spreadsheet to summarize the information above. [Note: Please use the format that is illustrated in chapter 2 of the textbook for this assignment, and for simplicity purposes you can ignore income taxes in this problem.] Example Cash Flow Spreadsheet A company is trying to organize the following cash flows: Buy a machine for $25,000 in 2017. Increase cash inflows by $15,000 in 2018, 2019, and 2020. Pay additional taxes of $8,000 in 2019. Sell the machine for $10,000 in 2020. Question: Prepare a cash flow spreadsheet to summarize this information. Solution: Year 0 Year 1 Year 2 Year 3 Event 2018 2019 2020 2017 (25,000) 15,000 15,000 15,000 Buy machine Additional cash inflows Additional taxes Sell machine Net cash flows (8,000) 10,000 25.000 (25.000) 15,000 7,000 Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. A company is investigating the feasibility of purchasing a machine at the present time for $200,000. The following information pertains to the acquisition and use of the machine over the next five years: In year one the cash revenues generated by the machine are expected to be $76,000, and these revenues are expected to increase by 6% year-over-year in each of the remaining 4 years that they own the machine. The machine is expected to be sold at the end of 5 years for its estimated salvage value of $20,000. Expenses directly associated with the generation of the annual revenues noted above are expected to be 65% of the revenues in year one, 64% of the revenues in year two, 63% of the revenues in year three, 62% of the revenues in year four, and 61% of the revenues in year five. And these expenses include an annual depreciation expense of one-fifth of the cost (minus the salvage value) of the asset each year for the 5 years that the asset is held. The machine will require a major overhaul costing $40,000 at the end of year three. Prepare a cash flow spreadsheet to summarize the information above. [Note: Please use the format that is illustrated in chapter 2 of the textbook for this assignment, and for simplicity purposes you can ignore income taxes in this problem.] Example Cash Flow Spreadsheet A company is trying to organize the following cash flows: Buy a machine for $25,000 in 2017. Increase cash inflows by $15,000 in 2018, 2019, and 2020. Pay additional taxes of $8,000 in 2019. Sell the machine for $10,000 in 2020. Question: Prepare a cash flow spreadsheet to summarize this information. Solution: Year 0 Year 1 Year 2 Year 3 Event 2018 2019 2020 2017 (25,000) 15,000 15,000 15,000 Buy machine Additional cash inflows Additional taxes Sell machine Net cash flows (8,000) 10,000 25.000 (25.000) 15,000 7,000