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I need Help with my pay back period, DPB, NPV, IRR and profitability Index Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Project Cost

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I need Help with my pay back period, DPB, NPV, IRR and profitability Index

image text in transcribed Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 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 $70,000 $70,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% * The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property Calculate the following -- light yellow highlighted cells need to be co Year-0 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 Year-1 $70,000.00 14,000.00 56,000.00 19,600.00 $36,000.00 Year-2 $70,000.00 22,400.00 47,600.00 16,660.00 $30,940.00 14,000.00 22,400.00 $50,400.00 $52,940.00 Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index 6.00 Years 8.00 Years Discounted Cash Flow Needed for DPB Calc. Recommendations: mith Plumbing ded for analysis: Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 $65,000 $60,000 $55,000 $50,000 $40,000 $30,000 19.2% 11.5% 11.5% 5.8% ed as a five-year MACRS property for depreciation purposes. 0.0% 0.0% ow highlighted cells need to be completed sion Criteria: mmendations: Year-3 $65,000.00 12,480.00 52,520.00 18,382.00 $34,138.00 Year-4 $60,000.00 6,900.00 53,100.00 18,585.00 $34,515.00 Year-5 $55,000.00 6,325.00 48,675.00 17,036.00 $31,639.00 Year-6 $50,000.00 2,900.00 47,100.00 16,485.00 $30,615.00 Year-7 $40,000.00 0.00 40,000.00 14,000.00 $26,000.00 Year-8 $30,000.00 0.00 30,000.00 10,500.00 $19,500.00 12,480.00 6,900.00 6,325.00 2,900.00 0.00 0.00 $46,618.00 $41,415.00 $37,964.00 $33,515.00 $26,000.00 $19,500.00

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