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I need the formulas please. I need the excel formulas to find the answers to the highlighted parts. 1. Complete the capital budgeting methods. -
I need the formulas please.
I need the excel formulas to find the answers to the highlighted parts.
1. Complete the capital budgeting methods. - 5 years 5. Comparison of Capital Budgeting Methods - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri -11 Wrap Text General Paste BIU Merge & Center. $ . % * Conditional Format as Cell Formatting Table Styles Clipboard Font Alignment Number Styles A1 X Laurman, Inc. is considering the following project: B D E 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment $ 1.750.000 3 Project life 4 Salvage value 225.000 5 6 The project would provide net operating income each year as follows: 7 Sales S 2,750,000 8 Variable expenses 1.600.000 9 Contribution margin $ 1.150.000 10 Fixed expenses: 11 Salaries, rent and other fixed out of pocket costs $ 520,000 12 Depreciation 350.000 13 Total fixed expenses 870,000 14 Net operating income $ 280,000 IS 16 Cost of Capital 18% 17 18 1. Compute the annual net cash inflow from the project. S 630,000 19 m Complete the following timeline in ramrute the nat recent value of the future cash flow for this mirt Manfrotto include the calvaar va Prev 1 of 1 !!! Next D E 0 0 2 4 1000 23 Net cash flow 24 Discount Factor 1 (1+rn) 25 Present value of the cash flows 26 Net present value 28 3. UN Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investment at time zero. 29 NPV of Cash Flows from Years 1.5 30 Deduct the cost of the investment 31 Net present value 32 Write an if then statement to ACCEPT or REJECT the project based on NPV 4 4. Use Excel's IRR function to compute the project's internal rate of retum 35 Write an it/then statement to ACCEPT OF REJECT the project based on IRR 37 S.Compute the project's payback period. 99 6. Compute the project's accounting rate of return. 36 yan 38 Step by Step Solution
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