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I just need help with the spreadsheet for this assignment. Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Year-3 Project Cost of Capital (borrowing)
I just need help with the spreadsheet for this assignment.
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% $70,000 $70,000 $65,000 Calculate the following -- light yellow highlighted cells need to be completed Year-0 Annual Before Tax & Depreciation Truck Projected Earnings Depreciation Expense Annual Before Tax Truck Projected Earnings Tax Annual Projected Truck Earnings Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 70,000.00 70,000.00 65,000.00 60,000.00 55,000.00 50,000.00 40,000.00 30,000.00 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 Discounted Cash Flow Needed for DPB Calc. RecommendationsStep by Step Solution
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