I have 2 questions to complete that are linked together.

#1 For this week's assignment, update the spreadsheets you created in Modules 3 to incorporate depreciation and taxes. This will require you to consider and model before tax cash flows and after tax cash flows in your models and then determine the appropriate output for your model. Assume straight line depreciation only. A simple example is in Chapter 12. Inputs from the user would include initial investment, marginal tax rate, useful life, salvage value, MARR, annual benefits (revenue), and annual costs. The inputs for your submission are:

Initial Cost	$100,000
Annual Revenues	$81,155
Annual Costs (Excluding Depreciation)	$20,000
Year 3 Overhaul	$15,390
Year 6 Clean-up Costs	$17,690
Equipment Salvage/Book Value	$10,000
Useful Life	6 years
r (this was not provided in 2.3)	0.10
Tax Rate	0.35
Equipment Sold For	$20,000

Your model should show the before tax and after tax cash flows as well as the PV of the AFTC in each year and of course the NPV, which is the final solution. Your submission should include the model in ready to use clean version and a completed model using the above information (on separate tabs).

#2 For this week's assignment, use the spreadsheet you created in Module 3 and updated in Module 6. Update the spreadsheet by adding the financing component (calculation of WACC) for the model. In other words, instead of the model simply having an input that is the value of "r," users should input information about the capital structure of the firm, the cost of debt, the cost of equity for the firm, the weight of each, and WACC should be calculated and used in the calculations of the model. For your submission, the only additional data that will be needed to add to your model is:

Cost of Equity	13%
Cost of Debt	8.5%
Weight of Equity	50%
Weight of Debt	50%

Year 0 1 2 3 4 5 6 Initial Cost -$100,000 Annual Cash Flow $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Cash Flows (thousands) 0 1 2 Initial Cost Year 3 Overhaul 3 Annual Cash Flow 4 Year 6 Clean-up Cost Sal Year 3 Overhaul Year 6 Clean-up Cost Salvage Value -$15,000 $10,000 -$10,000 3 Annual Cash Flow 4 Year 6 Clean-up Cost 5 Salvage Value 6 Year 0 1 2 3 4 5 6 Initial Cost -$100,000 Annual Cash FlowAnnual Cash Flow PW Year 3 Overhaul $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $27,273 $24,793 $22,539 $20,490 $18,628 $16,934 -$10,000 $100,000 $90,000 $80,000 Cash Flows (thousands) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 -$10,000 -$20,000 -$30,000 -$40,000 -$50,000 -$60,000 -$70,000 -$80,000 -$90,000 -$100,000 0 1 2 Initial Cost Year 3 Overhaul PW 3 Annual Cash Flow PW Year 6 Clea 2 rhaul PW Year 3 Overhaul PW Year 6 Clean-up Year 6 Clean-up PW Salvage Value Salvage Value PW -$7,513 -$15,000 3 Annual Cash Flow PW -$8,467 4 Year 6 Clean-up PW $10,000 5 Salvage Value PW $5,645 6 6 Rate 10% 10% 10% 10% 10% 10% 10%