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(Estimated time allowance: 27 minutes) Use the following excel (info) to create an excel model that computes the Termination Value (TV) of the project at

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(Estimated time allowance: 27 minutes) Use the following excel (info) to create an excel model that computes the Termination Value (TV) of the project at the end of the project and answer the questions below. This is a 6-year project. All long-term assets are purchased at year 0 and sold in the first days of year 7; however, the proceeds (and any taxes associated with them) are only received at the end of year 7 (which is considered the end of the project for easiness of NPV calculations and modeling in excel just like it was done in CoCoMix and in the problems in GP-3B). The excel model must follow the format in CoCoMix. The excel spreadsheet must have 3 areas: Input area; working area; and results area. The excel file provided here is already set up that way. You just have to create the formula in the respective cells. Everything in the results area must be cell reference (no inputs by hand but only by referencing cells in the input or working areas). Make sure you fill out the cells in the shaded area (working area) using formulas and referencing to data in the input area. The results area of the model is the last part of the excel. Click here for the excel file for this problem. Round to nearest dollar: do not enter decimals; do not enter the $ symbol. For example, if your result is $237.85 then enter 238 if result is a cash outflow, enter the - sign in front of first digit (no space in between). If the result is a cash inflow, simply enter the answer (do not use the + sign). What is the tax effect of selling the office furniture in year 6? Is a cash inflow, simply enter the answer (do not use the + sign). What is the tax effect of selling the office furniture in year 6? A 2. What is the capital gain or loss that results from selling the manufacturing plant at the end of year 6? If capital gain, enter a positive number (no + sign); if capital loss enter it as a negative number (use the - sign in front of first digit). Do not enter the $ sign; round to zero decimals; A 3. What is the tax effect of selling the machinery the end of project? Do not enter the $ sign; round to zero decimals; if the tax effect is negative (a cash outflow due to tax payments), enter the sign in front of first digit (no space in between). If the result is a positive tax effect (a cash inflow due to tax credit), simply enter the answer (do not use the + sign). A 4. What is the recovery of the investments in working capital (net proceeds from selling the working capital) at end of prioject ? Do not enter the $ sign; round to zero decimals. A/ (Estimated time allowance: 27 minutes) Use the following excel (info) to create an excel model that computes the Termination Value (TV) of the project at the end of the project and answer the questions below. This is a 6-year project. All long-term assets are purchased at year 0 and sold in the first days of year 7; however, the proceeds (and any taxes associated with them) are only received at the end of year 7 (which is considered the end of the project for easiness of NPV calculations and modeling in excel just like it was done in CoCoMix and in the problems in GP-3B). The excel model must follow the format in CoCoMix. The excel spreadsheet must have 3 areas: Input area; working area; and results area. The excel file provided here is already set up that way. You just have to create the formula in the respective cells. Everything in the results area must be cell reference (no inputs by hand but only by referencing cells in the input or working areas). Make sure you fill out the cells in the shaded area (working area) using formulas and referencing to data in the input area. The results area of the model is the last part of the excel. Click here for the excel file for this problem. Round to nearest dollar: do not enter decimals; do not enter the $ symbol. For example, if your result is $237.85 then enter 238 if result is a cash outflow, enter the - sign in front of first digit (no space in between). If the result is a cash inflow, simply enter the answer (do not use the + sign). What is the tax effect of selling the office furniture in year 6? Is a cash inflow, simply enter the answer (do not use the + sign). What is the tax effect of selling the office furniture in year 6? A 2. What is the capital gain or loss that results from selling the manufacturing plant at the end of year 6? If capital gain, enter a positive number (no + sign); if capital loss enter it as a negative number (use the - sign in front of first digit). Do not enter the $ sign; round to zero decimals; A 3. What is the tax effect of selling the machinery the end of project? Do not enter the $ sign; round to zero decimals; if the tax effect is negative (a cash outflow due to tax payments), enter the sign in front of first digit (no space in between). If the result is a positive tax effect (a cash inflow due to tax credit), simply enter the answer (do not use the + sign). A 4. What is the recovery of the investments in working capital (net proceeds from selling the working capital) at end of prioject ? Do not enter the $ sign; round to zero decimals. A/

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