dAttached is the question, the excel and the template....help me come with a solution for it

100% G2 Wed Sep 23 10 23 E Word File Edit View Insert Format Tools Table Window Help 11:00 PM L WACB2420-Assignment1-Template-2020(2)(1) Home Insert Design Layout References Mailings Review View Q Search in Document + Share a Times New R... 12 - A A A A, A 1 AaBbCcDdEe AaBbcDdEe AaBbCcDc AabbCcDdEt AaBb AaBb CcDdEt AaBbCcDdEe Paste BI U abe X2 X2 A A A- Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph... Styles Pane 2. 1 2 3 5 6 7 8 9 10 11 12 1 11, 13.1.14./15, 16 17 18 N ACB2420 Semester 2-2020 Assignment 1 N Melbourne Central Sports and Entertainment Stadium (MCSES) Review of MCSES-initial-feasibility.xlsx file Prepared by (insert name and Monash ID#): Date prepared: Errors identified Detail of error (i.e. cell address, type Recommended correction procedure of error, and description) 1 m 00 2 3 Page 1 of 2 7 of 48 words 7 E English (Australia) + 100% Preview File Edit View Go Tools Window Help O 11:00 PM 100% Ga Wed Sep 23 10 21 = 2420.pdf (page 1 of 2) Q Search View Zoom Share Highlight Rotate Markup Search Ents ts Melbourne Central Sports and Entertainment Stadium (MCSES) You have recently secured a full-time position as Accountant with the Melbourne Central Sports and Entertainment Stadium. Your predecessor in this position recently resigned in controversial circumstances after it was alleged that she had arranged contracts for stadium cleaning and security services with related third-parties (to her), and on financial terms were materially unfavourable to MCSES. At the time of her resignation, your predecessor had been involved in the early stage of a preliminary investigation, supporting stadium management in its decision as to whether to undertake a re-fit of part of the attendee viewing area within the stadium. The following assumptions have been made about this proposed re-fit project: Adding 5,000 extra seats for general public, with each seat expected to generate $2,500 in incremental annual revenue in year 1 and this revenue is expected to compound at 2% per annum for each subsequent year. Adding four new corporate viewing boxes, with each corporate box expected to generate $400,000 in incremental annual revenue in year 1 and this revenue is expected to compound at 3% per annum for each subsequent year. Incremental expenses associated with extra seats for the general public is expected to be 50% of the incremental revenues from the general public seating, and for the . Preview File Edit View Go Tools Window Help O 11:00 PM 100% 67 Wed Sep 23 10 21 = 2420.pdf (page 2 of 2) Q Search View Zoom Share Highlight Rotate Markup Search Ents ts corporate boxes, the incremental expenses are expected to be 60% of the incremental revenues from the corporate boxes. These expenses include hiring additional personnel to handle concessions, ushering, cleaning, and security. Construction costs associated with the public seating and corporate boxes will be $25 million and will be fully depreciated to zero value, using straight-line depreciation method, over a 10-year life of the project. The salvage value of the seating and corporate boxes at the end of their useful life will be zero. The stadium will have to invest $1 million in additional working capital immediately, but the re-fit project will not require any further working capital investments during its life. Seventy percent of this working capital will be recovered in the last year of the project (year 10). The stadium's tax rate is 30% The stadium's cost of capital (discount rate) has initially been set at 10% At the time of her departure, your predecessor had been working on a spreadsheet model and you have been given access to it (see Melbourne-Central-Sports-Evaluation.xlsx). As a graduate from the BBA program at Monash University (with a major in Accountancy), you are fully aware that you need to carefully review any `inherited spreadsheet-based financial models for possible errors (as research indicates that the existence of errors in spreadsheet-based models is actually a significant problem in business). Preview File Edit View Go Tools Window Help O 11:00 PM 100% 52 Wed Sep 23 10 21 = 2420.pdf (page 2 of 2) Q Search i Highlight Rotate Markup View Zoom Share Search Ents . ts Required: The Senior Accountant has requested that you review the Melbourne-Central- Sports-Evaluation.xlsx file for possible spreadsheet model errors. (Note: to allow for easy identification of issues in this model, and for my marking of your submission, you may NOT insert or delete any rows/columns in this model; the model layout must remain unchanged). You are to apply the 'classification' of spreadsheet model errors introduced in week 2 of this semester (i.e. quantitative and qualitative errors see summary slides and video on Moodle). You are to report your findings back to the Senior Accountant using the 'template' provided with this question (Note: whilst the table in the template has provision for ten errors, there may be more or less errors in the model, and you can more rows either within each of the ten categories/errors in the table, or to the bottom of the table, as required) Excel File Edit View Insert Format Tools Data Window Help O 11:00 PM Melbourne-Central-Sports-Evaluation 100% G2 Wed Sep 23 10:22 Q Search Sheet 9+ Share II AutoSum Home Insert Page Layout Formulas Data Review View Calibri (Body) 20 A- A Wrap Text General 49 Fill Paste BI U U- 7 Merge & Center $ 7 % ) .00 .0 .00 Insert Delete Format Conditional Format Cell Formatting as Table Styles Clear Sort & Filter A1 fx MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) B D E F F G H J K L L N o P 1 MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) 2 3 Draft Preliminary Feasibility Evaluation 4 File: Melbourne-Central-Sports-Evaluation.xlsx 5 Prepared by: Ms Sally Justsacked 6 Date prepared: 31st June 2020 7 8 DATA 9 Remaining life of stadium 10 years 10 Cost of capital (Discount Rate) 10.0% 11 Tax Rate 30.0% 12 Year 13 Stadium construction cost (25,000,000) 0 14 Incremental working capital (1,000,000) 0 15 16 Incremental annual revenues Growth% 17 Box seating 1,600,000 3.0% 18 Quantity of new seats 5,000 19 Revenue per seat 2,500 2.0% 20 21 Incremental operating costs 60.0% 22 Depreciation rate 10.0% Straight-line method 23 Estimated salvage value 0 24 25 26 REPORT 27 Year 0 1 28 Project cash flows 29 Stadium Capital Budget Depreciation Sheet3 + 2 3 4 5 6 7 8 9 10 Ready Average: 1299206.787 Count: 218 Sum: 223463567.4 B + 110% Excel File Edit View Insert Format Tools Data Window Help E O 11:00 PM Melbourne-Central-Sports-Evaluation 100% G2 Wed Sep 23 10 23 Q Search Sheet Home Insert Page Layout Formulas Data Review View 9+ Share II Calibri (Body) 20 A- A- Wrap Text General AutoSum 49 Fill Paste B I U Merge & Center $ 7 % ) .00 ,00 .0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Clear Sort & Filter A1 fx MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) A B D E F G H 1 J L L M N o P 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000,000 0 1,648,000 12,500,000 1,697,440 12,500,000 1,748,363 12,500,000 1,800,814 12,500,000 1,854,839 12,500,000 1,910,484 12,500,000 1,967,798 12,500,000 2,026,832 12,500,000 2,087,637 12,500,000 (988,800) (6,250,000) 6,909,200 (1,018,464) (6,250,000) 6,928,976 (1,049,018) (6,250,000) 6,949,345 (1,080,488) (6,250,000) 6,970,326 (1,112,903) (6,250,000) 6,991,935 (1,146,290) (6,250,000) 7,014,193 (1,180,679) (6,250,000) 7,037,119 (1,216,099) (6,250,000) 7,060,733 (1,252,582) (6,250,000) 7,085,055 29 30 New construction cost (25,000,000) 0 31 Incremental working capital (1,000,000) 0 32 Working capital recovered 0 33 Salvage value recovered 34 35 Add incremental revenues 36 Box seating 1,600,000 37 General seating 12,500,000 38 39 Less Incremental expenses 40 Box seating (960,000) 41 General seating (6,250,000) 42 NCF from operations before tax and depn 6,890,000 43 44 Tax (payable)/saving on operations before depn (2,067,000) 45 NCF from operations after tax before depn 4,823,000 46 47 Tax saving from depn 750,000 48 Tax (payable)/saving on profit/(Loss) on disposal 0 49 NCF from operation 5,573,000 50 Overall net cash flow (NCF) (26,000,000) 5,573,000 51 52 Net present value (NPV) 8,069,385 53 Internal rate of return 10.6% 54 Investment decision Don't Invest 55 56 57 CO Stadium Capital Budget Depreciation Sheet3 + (2,125,516) (2,072,760) 4,836,440 (2,078,693) 4,850,283 (2,084,804) 4,864,542 (2,091,098) 4,879,228 (2,097,581) 4,894,355 (2,104,258) 4,909,935 (2,111,136) 5,137,097 (2,118,220) 5,154,335 5,172,090 607,500 0 442,868 0 358,723 0 675,000 0 5,511,440 5,511,440 546,750 0 5,411,292 5,411,292 492,075 0 5,371,303 5,371,303 398,581 0 5,308,516 5,308,516 322,850 0 5,477,185 5,477,185 290,565 2,615,088 8,077,744 9,077,744 5,457,783 5,457,783 5,337,222 5,337,222 5,495,820 5,495,820 Ready Average: 1299206.787 Count: 218 Sum: 223463567.4 B + 110% Excel File Edit View Insert Format Tools Data Window Help 100% G2 Wed Sep 23 10:23 E O 11:00 PM Melbourne-Central-Sports-Evaluation Home Insert Page Layout Formulas Data Review View Calibri (Body) Q Search Sheet 9+ Share II AutoSum Fill Format Sort & Clear Filter 11 Wrap Text A- A General 49: Paste B I u - A Merge & Center $ - % > 2.0 .00 .00 .0 Insert Delete Conditional Format Cell Formatting as Table Styles A1 X fx A B D E F G H 1 K L M N O P 0 R S T 9 1 2 2 CALCULATION AREA 3 Opening book value 4 Depreciation 5 Closing book value 6 Profit/(Loss) on Disposal 7 1 25,000,000 2,500,000 22,500,000 0 2 22,500,000 2,250,000 20,250,000 0 3 20,250,000 2,025,000 18,225,000 0 4 18,225,000 1,822,500 16,402,500 0 0 5 16,402,500 1,640,250 14,762,250 0 6 14,762,250 1,476,225 13,286,025 0 7 13,286,025 1,328,603 11,957,423 0 8 11,957,423 1,195,742 10,761,680 0 10,761,680 1,076,168 9,685,512 0 10 9,685,512 968,551 8,716,961 (8,716,961) 8 9 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Stadium Capital Budget Depreciation Sheet3 + Ready 100% G2 Wed Sep 23 10 23 E Word File Edit View Insert Format Tools Table Window Help 11:00 PM L WACB2420-Assignment1-Template-2020(2)(1) Home Insert Design Layout References Mailings Review View Q Search in Document + Share a Times New R... 12 - A A A A, A 1 AaBbCcDdEe AaBbcDdEe AaBbCcDc AabbCcDdEt AaBb AaBb CcDdEt AaBbCcDdEe Paste BI U abe X2 X2 A A A- Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph... Styles Pane 2. 1 2 3 5 6 7 8 9 10 11 12 1 11, 13.1.14./15, 16 17 18 N ACB2420 Semester 2-2020 Assignment 1 N Melbourne Central Sports and Entertainment Stadium (MCSES) Review of MCSES-initial-feasibility.xlsx file Prepared by (insert name and Monash ID#): Date prepared: Errors identified Detail of error (i.e. cell address, type Recommended correction procedure of error, and description) 1 m 00 2 3 Page 1 of 2 7 of 48 words 7 E English (Australia) + 100% Preview File Edit View Go Tools Window Help O 11:00 PM 100% Ga Wed Sep 23 10 21 = 2420.pdf (page 1 of 2) Q Search View Zoom Share Highlight Rotate Markup Search Ents ts Melbourne Central Sports and Entertainment Stadium (MCSES) You have recently secured a full-time position as Accountant with the Melbourne Central Sports and Entertainment Stadium. Your predecessor in this position recently resigned in controversial circumstances after it was alleged that she had arranged contracts for stadium cleaning and security services with related third-parties (to her), and on financial terms were materially unfavourable to MCSES. At the time of her resignation, your predecessor had been involved in the early stage of a preliminary investigation, supporting stadium management in its decision as to whether to undertake a re-fit of part of the attendee viewing area within the stadium. The following assumptions have been made about this proposed re-fit project: Adding 5,000 extra seats for general public, with each seat expected to generate $2,500 in incremental annual revenue in year 1 and this revenue is expected to compound at 2% per annum for each subsequent year. Adding four new corporate viewing boxes, with each corporate box expected to generate $400,000 in incremental annual revenue in year 1 and this revenue is expected to compound at 3% per annum for each subsequent year. Incremental expenses associated with extra seats for the general public is expected to be 50% of the incremental revenues from the general public seating, and for the . Preview File Edit View Go Tools Window Help O 11:00 PM 100% 67 Wed Sep 23 10 21 = 2420.pdf (page 2 of 2) Q Search View Zoom Share Highlight Rotate Markup Search Ents ts corporate boxes, the incremental expenses are expected to be 60% of the incremental revenues from the corporate boxes. These expenses include hiring additional personnel to handle concessions, ushering, cleaning, and security. Construction costs associated with the public seating and corporate boxes will be $25 million and will be fully depreciated to zero value, using straight-line depreciation method, over a 10-year life of the project. The salvage value of the seating and corporate boxes at the end of their useful life will be zero. The stadium will have to invest $1 million in additional working capital immediately, but the re-fit project will not require any further working capital investments during its life. Seventy percent of this working capital will be recovered in the last year of the project (year 10). The stadium's tax rate is 30% The stadium's cost of capital (discount rate) has initially been set at 10% At the time of her departure, your predecessor had been working on a spreadsheet model and you have been given access to it (see Melbourne-Central-Sports-Evaluation.xlsx). As a graduate from the BBA program at Monash University (with a major in Accountancy), you are fully aware that you need to carefully review any `inherited spreadsheet-based financial models for possible errors (as research indicates that the existence of errors in spreadsheet-based models is actually a significant problem in business). Preview File Edit View Go Tools Window Help O 11:00 PM 100% 52 Wed Sep 23 10 21 = 2420.pdf (page 2 of 2) Q Search i Highlight Rotate Markup View Zoom Share Search Ents . ts Required: The Senior Accountant has requested that you review the Melbourne-Central- Sports-Evaluation.xlsx file for possible spreadsheet model errors. (Note: to allow for easy identification of issues in this model, and for my marking of your submission, you may NOT insert or delete any rows/columns in this model; the model layout must remain unchanged). You are to apply the 'classification' of spreadsheet model errors introduced in week 2 of this semester (i.e. quantitative and qualitative errors see summary slides and video on Moodle). You are to report your findings back to the Senior Accountant using the 'template' provided with this question (Note: whilst the table in the template has provision for ten errors, there may be more or less errors in the model, and you can more rows either within each of the ten categories/errors in the table, or to the bottom of the table, as required) Excel File Edit View Insert Format Tools Data Window Help O 11:00 PM Melbourne-Central-Sports-Evaluation 100% G2 Wed Sep 23 10:22 Q Search Sheet 9+ Share II AutoSum Home Insert Page Layout Formulas Data Review View Calibri (Body) 20 A- A Wrap Text General 49 Fill Paste BI U U- 7 Merge & Center $ 7 % ) .00 .0 .00 Insert Delete Format Conditional Format Cell Formatting as Table Styles Clear Sort & Filter A1 fx MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) B D E F F G H J K L L N o P 1 MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) 2 3 Draft Preliminary Feasibility Evaluation 4 File: Melbourne-Central-Sports-Evaluation.xlsx 5 Prepared by: Ms Sally Justsacked 6 Date prepared: 31st June 2020 7 8 DATA 9 Remaining life of stadium 10 years 10 Cost of capital (Discount Rate) 10.0% 11 Tax Rate 30.0% 12 Year 13 Stadium construction cost (25,000,000) 0 14 Incremental working capital (1,000,000) 0 15 16 Incremental annual revenues Growth% 17 Box seating 1,600,000 3.0% 18 Quantity of new seats 5,000 19 Revenue per seat 2,500 2.0% 20 21 Incremental operating costs 60.0% 22 Depreciation rate 10.0% Straight-line method 23 Estimated salvage value 0 24 25 26 REPORT 27 Year 0 1 28 Project cash flows 29 Stadium Capital Budget Depreciation Sheet3 + 2 3 4 5 6 7 8 9 10 Ready Average: 1299206.787 Count: 218 Sum: 223463567.4 B + 110% Excel File Edit View Insert Format Tools Data Window Help E O 11:00 PM Melbourne-Central-Sports-Evaluation 100% G2 Wed Sep 23 10 23 Q Search Sheet Home Insert Page Layout Formulas Data Review View 9+ Share II Calibri (Body) 20 A- A- Wrap Text General AutoSum 49 Fill Paste B I U Merge & Center $ 7 % ) .00 ,00 .0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Clear Sort & Filter A1 fx MELBOURNE CENTRAL SPORTS AND ENTERTAINMENT STADIUM (MCSES) A B D E F G H 1 J L L M N o P 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000,000 0 1,648,000 12,500,000 1,697,440 12,500,000 1,748,363 12,500,000 1,800,814 12,500,000 1,854,839 12,500,000 1,910,484 12,500,000 1,967,798 12,500,000 2,026,832 12,500,000 2,087,637 12,500,000 (988,800) (6,250,000) 6,909,200 (1,018,464) (6,250,000) 6,928,976 (1,049,018) (6,250,000) 6,949,345 (1,080,488) (6,250,000) 6,970,326 (1,112,903) (6,250,000) 6,991,935 (1,146,290) (6,250,000) 7,014,193 (1,180,679) (6,250,000) 7,037,119 (1,216,099) (6,250,000) 7,060,733 (1,252,582) (6,250,000) 7,085,055 29 30 New construction cost (25,000,000) 0 31 Incremental working capital (1,000,000) 0 32 Working capital recovered 0 33 Salvage value recovered 34 35 Add incremental revenues 36 Box seating 1,600,000 37 General seating 12,500,000 38 39 Less Incremental expenses 40 Box seating (960,000) 41 General seating (6,250,000) 42 NCF from operations before tax and depn 6,890,000 43 44 Tax (payable)/saving on operations before depn (2,067,000) 45 NCF from operations after tax before depn 4,823,000 46 47 Tax saving from depn 750,000 48 Tax (payable)/saving on profit/(Loss) on disposal 0 49 NCF from operation 5,573,000 50 Overall net cash flow (NCF) (26,000,000) 5,573,000 51 52 Net present value (NPV) 8,069,385 53 Internal rate of return 10.6% 54 Investment decision Don't Invest 55 56 57 CO Stadium Capital Budget Depreciation Sheet3 + (2,125,516) (2,072,760) 4,836,440 (2,078,693) 4,850,283 (2,084,804) 4,864,542 (2,091,098) 4,879,228 (2,097,581) 4,894,355 (2,104,258) 4,909,935 (2,111,136) 5,137,097 (2,118,220) 5,154,335 5,172,090 607,500 0 442,868 0 358,723 0 675,000 0 5,511,440 5,511,440 546,750 0 5,411,292 5,411,292 492,075 0 5,371,303 5,371,303 398,581 0 5,308,516 5,308,516 322,850 0 5,477,185 5,477,185 290,565 2,615,088 8,077,744 9,077,744 5,457,783 5,457,783 5,337,222 5,337,222 5,495,820 5,495,820 Ready Average: 1299206.787 Count: 218 Sum: 223463567.4 B + 110% Excel File Edit View Insert Format Tools Data Window Help 100% G2 Wed Sep 23 10:23 E O 11:00 PM Melbourne-Central-Sports-Evaluation Home Insert Page Layout Formulas Data Review View Calibri (Body) Q Search Sheet 9+ Share II AutoSum Fill Format Sort & Clear Filter 11 Wrap Text A- A General 49: Paste B I u - A Merge & Center $ - % > 2.0 .00 .00 .0 Insert Delete Conditional Format Cell Formatting as Table Styles A1 X fx A B D E F G H 1 K L M N O P 0 R S T 9 1 2 2 CALCULATION AREA 3 Opening book value 4 Depreciation 5 Closing book value 6 Profit/(Loss) on Disposal 7 1 25,000,000 2,500,000 22,500,000 0 2 22,500,000 2,250,000 20,250,000 0 3 20,250,000 2,025,000 18,225,000 0 4 18,225,000 1,822,500 16,402,500 0 0 5 16,402,500 1,640,250 14,762,250 0 6 14,762,250 1,476,225 13,286,025 0 7 13,286,025 1,328,603 11,957,423 0 8 11,957,423 1,195,742 10,761,680 0 10,761,680 1,076,168 9,685,512 0 10 9,685,512 968,551 8,716,961 (8,716,961) 8 9 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Stadium Capital Budget Depreciation Sheet3 + Ready