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I was wondering if i could get help on this cash flow spread sheet. I'm at a loss on the formulas to fill in the
I was wondering if i could get help on this cash flow spread sheet. I'm at a loss on the formulas to fill in the the needed areas.
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 Year-0 Year-1 Year-2 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 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. Recommendations: Smith Plumbing a Needed 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% Year-7 Year-8 t yellow highlighted cells need to be completed Year-3 Decision Criteria: Recommendations: Year-4 Year-5 Year-6 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 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 Discount factor (1.12)^-n Discounted cash flows Year-1 $70,000 14,000.00 56,000.00 19,600.00 $36,400.00 Year-2 $70,000 22,400.00 47,600.00 16,660.00 $30,940.00 14,000.00 22,400.00 $50,400.00 $53,340.00 0.8929 0.7972 -200,000 45002.16 42522.648 Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index Discounted Cash Flow Needed for DPB Calc. Projected Truck Net Cash Flow Discount factor (1.12)^-n Discounted cash flows 4.22 Years 7.34 Years 5181.91364999997 0.77% 1.03 $50,400.00 $53,340.00 0.8929 0.7972 -200,000 45002.16 42522.648 it is recommended that theproject should be undertaken because it has a positive net present value of $5,181.91365. Fro undertaken if at all it has a positive net present value. since the project has a positive net present value, it should be unde it is recommended that theproject should be undertaken because it has a positive net present value of $5,181.91365. Fro undertaken if at all it has a positive net present value. since the project has a positive net present value, it should be unde Smith Plumbing a Needed 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% t yellow highlighted cells need to be completed Year-3 $65,000 12,480.00 52,520.00 18,382.00 $34,138.00 Year-4 $60,000 6,900.00 53,100.00 18,585.00 $34,515.00 Year-5 $55,000 6,325.00 48,675.00 17,036.25 $31,638.75 Year-6 $50,000 2,900.00 47,100.00 16,485.00 $30,615.00 Year-7 $40,000 0.00 40,000.00 14,000.00 $26,000.00 Year-8 $30,000 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 $37,963.75 $33,515.00 $26,000.00 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 33182.6924 26319.2325 21540.63175 16978.699 11759.8 $19,500.00 7876.05 205181.91365 Decision Criteria: $46,618.00 $41,415.00 $37,963.75 $33,515.00 $26,000.00 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 33182.6924 26319.2325 21540.63175 16978.699 11759.8 ### ### $19,500.00 7876.05 205181.91365 t present value of $5,181.91365. From the net present value creteria, a project shpould only be net present value, it should be undertaken. t present value of $5,181.91365. From the net present value creteria, a project shpould only be net present value, it should be undertakenStep by Step Solution
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