How come the 800,000 for the land immediate payment is not showing in the excel sheet D4. Like the construction shows? Should t there be a -$800,000?

the TX corporation is planning on building a new factory. The land will cost $800,000 payable immediately. The construction of the factory will cost 5,010,000 construction will take 2 years with construction cost payable in equal installments at the start of each year. The factory will operate for 20 years after completion. At the end of its 20 year life span it will be sold for 3,044,000. The discount rate for this investment is 10%. The factory will have operating profits $690,000 you may assume that operating profits flow at the end of each year of operation. You may ignore taxes and Cost of Capital allowance (CCA) for this problem. 1. What is the net present value for the factory ? ) must be shown using EXCEL for answer 2. What is the internal rate of return for the factory? (must be shown in EXCEL for answer 3. Should TZ corporation build the factory yes or no? All answers have to be shown in EXCEL Accounting Business Financial Accounting FINC 3116 Answer & Explanation 17 Helpful Solved by verified expert Answered by alexanderdigot 1. Net present Value -353,487.46 2. IRR 9.29% 3. No Step-by-step explanation Cach Inflows Cach Outflows Total Cash Flows PV Factor PV D.00 3 305,100.00 -3.305,000.00 -3,305,300.00 D.00 2 505,100 00 2 505,000.00 0.909150905 -2.277 272 13 D B26446241 690.090 00 0.751314801 613 407 21 1590.060.50 692.900.00 0.503013453 471.279.20 690,060.00 0 01 693,900.00 .620921323 420 435 71 690,040.00 0.00 693,060.00 0.96447393 389 487.01 690,040.00 0.00 693,800 00 15131581 18 354,079 10 640,046 60 0 46450738 321,356 09 1790.060.00 193.090.0g 242.527.36 690.060.00 693,000.00 0.305543285 265.124 BT 690,0CD.00 0 00 693,000.00 .360453095 241,340 79 690,040.00 0 00 693,080.00 0.318520818 219,355 26 0 28068 38 191 368 42 120.060 0 1290.050 00 0.21:3231254 15 690.060.00 693.900.00 0.209 392045 165. 180.51 18 16 693,000.00 0.217529136 17 690,060.00 0 00 150, 164 10 690,060. 00 0 00 693,800 00 0. 197 344653 135,512 62 20 18 620 040.00 0 00 803,800700 0 17985875 124, 142 57 21 D 164507941 112 320 61 690.060.0 697.090.00 0. 120543628 102.564. 10 23 690.060.00 0 00 693,900.00 .135130571 93.240.09 24 3,734,0CD.DO 0 00 3 734,000 00 0.122345974 453,706 BT 25 |Total Cash Flows 15, 844,060.00 5 814,100 00 11,034,860 00 25 Mat present Value -363 487 46 -NPV1 10% ,03 0241410 27 IRR 4 29% -IRR 12 024)