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Laurman, Inc. is considering a new project and has provided the details of the project. The Controller has asked you to compute various capital budgeting
Laurman, Inc. is considering a new project and has provided the details of the project. The Controller has asked you to compute various capital budgeting methods to help aid in the decision to pursue the investment. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, C was entered, the formula would output the result from cell C or in this example.
Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: plus sign to addminus sign to subtractasterisk sign to multiply and forward slash to divide From the Excel Simulation below, if in a blank cell DD was entered, the formula would add the values from those cells and output the result, or in this example. If using the other math symbols the result would output an appropriate answer for its function.
SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell SUMDDD was entered, the formula would output the result of adding those three separate cells, or in this example. Similarly, if in a blank cell SUMD:D was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be in this example.
RATE function: Allows you to return the interest rate per period. The syntax of the RATE function is RATEnperpmtpvfvtypeguess and results in the percentage interest rate value for the related inputs. The nper argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the life of the investment and this argument must be included if the fv argument is not included. The pv argument is the present value, or the total amount that series of future payments is worth now. The fv argument is the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The type argument is a logical value of or which indicates when the payments are due where is the payment at the beginning of the period and is the payment at the end of the period. Both the fv and type values are optional arguments to have the formula work, which is why they are surrounded by brackets in the syntax, however, these values would not be entered with brackets in the actual function. The guess argument is also optional and is your guess for what the rate will be however, if omitted the system assumes a guess of percent. For the purposes of this Excel Simulation, please include both the pmt and fv arguments, but leave out the type and guess arguments from the function. Also, the pv argument should be entered as negative value.
PV Function: Allows you to perform the mathematical present value calculation of a value. The syntax of the PV function is PVratenper,pmtfvtype and results in the total amount that a series of future payments is worth now also known as the present value. The rate argument is the interest rate per period. The nper argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the life of the investment and this argument must be included if the fv argument is not included. The fv argument is the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The type argument is a logical value of or which indicates when the payments are due where is the payment at the beginning of the period and is the payment at the end of the period. Both the fv and type values are optional arguments to have the formula work, which is why they are surrounded by brackets in the syntax, however, these values would not be entered with brackets in the actual function. For the purposes of this Excel Simulation, please include both the pmt and fv arguments, but leave out the type argument from the function. Also, the entire PV function should have a minus sign included before the formula so the calculation will result in a positive value iePVAAAAtableInitial investment,$Annual cost savings,,,$Salvage value of the new machine,,,,,$
I just need the formulas for those
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