I. In the Data Table:

A. Use the WACC calulated on the Cost of Capital tab

B. Calulate the loan amount with a 10% down payment

II. In the After-tax Cash Flow:

C. Complete the Depreciation Expense from Project 4 (straight line, $0 Salvage)

D. Complete the interest expense using the loan interest rate.

E. Complete the After-tax Cash Flow Table including the interest expense

F. Compute the PV, NPV1, IRR, and adjusted NPV2

\begin{tabular}{|l|l|r|l|} \hline \hline \multicolumn{4}{|c|}{ Payback Tab } \\ \hline & & & \\ \hline & & 191.10 & million \\ \hline Cost of new equipment (at yeat 0) & & 26.0% & \\ \hline Corporate income tax rate - federal & & 8.0% & \\ \hline Corporate income tax rate - State of Maryland & 8.16% & \\ \hline Discount rate for the project using WACC & & & million \\ \hline Loan Amount & & 5.25% & \\ \hline Loan interest rate (Prime +2 ) & & \\ \hline \end{tabular} \begin{tabular}{|l|l|r|l|} \hline \hline \multicolumn{4}{|c|}{ Payback Tab } \\ \hline & & & \\ \hline & & 191.10 & million \\ \hline Cost of new equipment (at yeat 0) & & 26.0% & \\ \hline Corporate income tax rate - federal & & 8.0% & \\ \hline Corporate income tax rate - State of Maryland & 8.16% & \\ \hline Discount rate for the project using WACC & & & million \\ \hline Loan Amount & & 5.25% & \\ \hline Loan interest rate (Prime +2 ) & & \\ \hline \end{tabular}