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FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In X Calibri 11 i M Paste BIU Cells Editing A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles f. Laurman, Inc. is considering the following project: Cpboard Font A1 v B D E $ $ 2,750,000 1,600,000 1,150,000 9 $ $ 1 Laurman, Inc. is considering the followihe project: 2 Required investment in equipment 2,205,000 3 Project life 7 Salvage value 225,000 5 6. The project would provide net operating income each year as follows: 7 Sales 8 Variable expenses Contribution margin 10 Fixed expenses: 11 Salaries, rent and other fixed out of pocket costs 520,000 12 Depreciation 350,000 13 Total fixed expenses 14 Net operating income 15 16 Company discount rate 18% 17 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 22 Year(s) 23 Now 17 870,000 280.000 Z Sheet1 READY Attempt(s) 100% PILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calibri - 11 ED Paste BIU- Cells Editing | AA % A Alignment Number Conditional Format as Cell Formatting Table Styles Styles Laurman, Inc. is considering the following project: pboard Font A1 > B D E 2 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment 21 22 Yearts) 23 Now 1-7 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine 2.7 Total cash flows 28 Discount factor 1.000 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV function to compute the present value of the future cash flows 33 Deduct the cost of the investment 34 Net present value 35 36 3. Use Excel's RATE function to compute the project's internal rate of return 37 38 4. Compute the project's payback period. years 39 40 S. Compute the project's simple rate of return. Sheet1 100% READY Attempt(s)