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I downloaded a solution to which I realized it didn't match what I needed for my class. I can't figure out what I am suppose
I downloaded a solution to which I realized it didn't match what I needed for my class. I can't figure out what I am suppose to do or how I am going to come up withthe answers and my professor is not helping understand the material at all. I just need to know how to figure out how to do the following spreadsheet. The rest of the assignment I can figure out.
Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Year-3 Project Cost of Capital (borrowing) 12.00% Cost of Truck $200,000 Cost of additional equiment attached to truck $15,000 Tax rate 35% Annual Before Tax & Depreciation Truck Projected Earnings Year-4 Year-5 Year-6 Year-7 Year-8 $60,000 $55,000 $50,000 $40,000 $30,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% 19.2% 11.5% 11.5% 5.8% * The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property for depreciation purposes. 0.0% 0.0% Year-7 Year-8 $70,000 $70,000 $65,000 Calculate the following -- light yellow highlighted cells need to be completed Year-0 Year-1 Year-2 Annual Before Tax & Depreciation Truck Projected Earnings Depreciation Expense Annual Before Tax Truck Projected Earnings Tax Annual Projected Truck Earnings Depreciation to add back Projected Truck Net Cash Flow Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index Years Years #DIV/0! Discounted Cash Flow Needed for DPB Calc. Recommendations: Year-3 Year-4 Year-5 Year-6Step by Step Solution
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