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I am working on a problem similar to one already posted. However a few cells of the spreadsheet have been changed. I have attached a
I am working on a problem similar to one already posted. However a few cells of the spreadsheet have been changed. I have attached a copy of the spreadsheet per Course Hero and then row 93 starts the assignment. The difference on the assignment lists items Annual Before Tax & Depreciation Truck Projected Earnings, Depreciation Expense, Annual Before Tax Truck Projected Earnings, and Depreciation to add back. Help?
POSTED ON COURSE HERO Data: Cost of Capital (borrowing) Cost of Truck Cost of additional equiment atached to turck Tax rate Annual Before Tax Cash flows Project 12.00% $200,000 $15,000 35% Depreciaiton Rate (MACRS) Cash Outflows: Cost of Equipment Total Investment Outlays Year - 0 $215,000 -$215,000 Cash Inflows: Net Operating Cash flows Cummulative cash flow Present value Discounted cash flow Discounted cumulative cash flow Decision Criteria: Pay Back Period Discounted Pay Back Period Net Present Value Internal Rate of Return Profitability Index Year-0 (215,000) $2.76 $3.90 $77,037.17 23.70% $1.36 Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 $55,000 $65,000 $50,000 $40,000 $32,000 $30,000 $35,000 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 $66,473.50 $94,903.50 $70,103.50 $52,853.50 $39,999.50 $38,678.00 $41,949.50 (148,527) (53,623) 0.892857143 0.797193878 0.711780248 0.635518078 0.567426856 0.506631121 0.452349215 $59,351.34 $75,656.49 $49,898.29 $33,589.35 $22,696.79 $19,595.48 $18,975.82 -$155,648.66 -$79,992.17 -$30,093.88 Year-8 $32,000 4.46% Year-8 $30,389.00 0.403883228 $12,273.61Step by Step Solution
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