Jack Devaro, the CEO of Angela Designer Bags, has requested that you assist with completing the Replacement Analysis that the Finance Manager, who abruptly resigned a week ago, was busy completing. Devaro has provided you with a snapshot of what he could salvage from the previous Finance Manager's computer and has requested that you calculate the rest of the amounts indicated in the snapshot below.

$\backslash$table$[[\frac{?}{{?}_{\frac{?}{?}}},$A$,$B$,$c$,$D$],[\backslash$table$[[1],[2]],\backslash$table$[[$Angela Designer bags company$],[$Replacement Analysis$]]],[3,,$Old Machine,New machine,Difference$],[4,$Price,$50000,87000,],[5,$shipping and install,$0,8000,],[6,$Original life,$12,10,],[\backslash$table$[[7,]],$current life,$6,6,],[,$Original savage value,$0,20000,],[9,$Current salvage value,$25000,0,],[10,$Book value,$22000,90000,],[11,$Increase in raw materials,$0,5000,],[12,$Depreciation,$5000,11500,?],[13,$Salaries,$35000,,?],[14,$Maintenance,$8000,7000,?],[15,$Defects,$4000,2000,?],[16,$Marginal tax rate,$27\%,,],[17,$Required return,$12\%,,],[18,,,,],[19,$Cashflows,,$],[20,$Initial outlay,?,,$],[21,$Annual after$-$tax savings,?,,$],[22,$Depreciation tax benefit,?,,$],[23,$After tax cashflows,?,,$],[24,$Terminal cashflow,?,,$]]$

$7$

HPFM$440-1-$Jan$-$Jun$2024-$SuppSA$1-$LM$-$V$2-12062024$

Required:

$2\mathrm{.}1$ Complete the question marks in the CEO's snapshot by calculating the relevant cashflows.

$[32$ Marks$]$

CEO instructions:

Enter the data provided by the CEO as per the snapshot in Excel. Take note of the cells and rows where information is placed. Merge and center row $1,$ column A$-$D and bold the words.

Make use of formulas, cell reference and absolute cell referencing when calculating the amounts in the cell.

Include the normal view and formula view in separate sheets before converting your assignment to PDF as per the assessment instructions.

Mark Allocation:

Normal view $-9$ Marks

Formula view $-23$ Marks

$2\mathrm{.}2.$ Determine how long it will take to recoup the initial investment.

$[27$ Marks$]$

CEO instructions:

Make use of the following snapshot to determine the payback period using Excel.

$\backslash$table$[[4,$A$,B,$C$],[1,$Payback period$],[2,$Period,Cashflows,Payback$],[3,,,],[4,,,],[5,,,],[6,,,],[7,,,],[8,,,],[9,,,]]$

$8$

HPFM$440-1-$Jan$-$Jun$2024-$SuppSA$1-$LM$-$V$2-12062024$

Make use of IF statement, COUNT and ABS functions in column C to determine the payback period.

Make use of cell referencing in Column B to figures calculated in question $2\mathrm{.}1.$

Fill the cell in column $A$ in yellow to highlight the payback period.

Include the normal view and formula view in separate sheets before converting your assignment to PDF as per the assessment instructions.

Mark allocation:

Normal view $-14$ Marks

Formula view$-13$ Marks