me Insert Draw Page Layout Formulas Watu Review VIEW reme Times New Roman 14 ' 29 General X ID HL D% CA A $% % 0 Conditional Format Cell Formatting as Table Styles 29 fax Spreadsheet Exercise: Chapter 5 M At the end of 2019. Uma Corporation is considering a major long-term project in an effort to remain competitive in its industry The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm ifit acts soon. Specifically, they estimate that a mixed stream of future cash flow suvings will occur at the end of the years 2020 through 2025. The years 2026 through 2030 will see consecutive $90,0000 cash flow savings at the end of each year. The fin estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the ycars 2026 through 2030 will be 11% The project managers will find the project acceptable if it results in present cush flow savings of at least $860,000. The following cash flow savings data are supplied to the finance department for anulysis. Important: Do not use cell references to cells in rows 7 to 17. For all required answers, use cell references to values starting in tow 29) 3 5 3 10 n 12 13 14 End of year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cash flow savings S 110,000 120,000 130,000 150.000 160,000 150.000 90,000 90,000 90.000 90,000 90,000 16 17 15 19 20 To Do Creale spreadsheets similar to Table 5.2, and then answer the following questions, . Dxtermine the present value of the future cash flow savings expected to be generated by this project, Chapter 5 + 02 otv a 5 7 Excel File Edit View insert Format AutoSave OFF OFFRESU Tools Data Window Help Di Costanzo_Zutter_Spreadsheet_Chapter_5_Start Data Review View Tell me Home Insert Draw Page Layout Formulas Times New Roman PA A General Insert 5x Deleta Paste BIU $ % 8-9 Conditional Format Call Formatting as Table Styles Format H29 H M N C D 30 To Do Create spread liccts similar to Table 52 and then answer the following questions Determine the present value of the future cash flow savings expected to be generated by this project b. Basod solely on the one criterion set by management, should the firmu undertake this specitic project? Explain c. What is the interest rate risk," and how might it influence the recommendation made in part b? Explain 22 3 Solution 25 20 27 28 u. Delamine the value of the future cash flow savings expected to be generated by this projet. Discount mate for years 2020 2025 Discount rate for years 2026 - 2030 7% 11% 30 31 17 Present Value 33 S # as 30 Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (m) 1 2 2 4 3 6 7 12 3 Cash Flow 110,000 120.000 130.000 150,000 160,000 150.000 90,000 90.000 90.000 90,000 90.000 39 10 8 42 LE 10 11 14 15 h. Based solely be one criterion Net by management should the llum undertake this specific project Explain Chapter 5 + V 22 Excel File Edit View Insert Format Tools AutoSaver BBS Data Window Help Di Costanzo Zutter_Spreadsheet_Chapter 5 Start Formulas Data Review Page Layout Home View Tell me Insert Draw Insert General Times New Roman 14 A S962 Conditional For Cell Formatting Table Styles Format POGI A B H29 M N D 47 48 b. Based solely on the one criterion set by management, shold horm undertake this specific project? Txplain Based solely on the criteria ser by management, the fimm of the expected luge savings total S undertake this project as the prest value than the $860.000 hundle. - which is su 5 5 53 c. What is the interest rate risk," and how might influence the recommendation made in part ! Explain. . change in the value of an asset bold tree. If the the interest me ware totis just 1 percent, the present value of the expected savings would fall below the waited $86000limis set by mangcauet 54 56 Is the above statement nie or false! 33 58 Requirements In cell range T34:444, hy using cell references to the given dela, calculate ile present value of the cash flow for ca 2020 thru 2030, (Hint: ta ochi F40. you will need to cater tho nustod PV fonction -PV(FS29.SD$39.0,-PVISFS 30,140-SDS39,0.-F.40%) and copy paste it into cells F41:44 Points 11 2 13 1 1 ? In cells F 45 and F45lvy using ecli references to the given 1, calculate the total cash flow and total presentaluc, respectively In cell G49, type either should or should not depending on whether you would recommend undertaking the project or not, respectively 4 In cell HSD.lype either greater or smaller depending on whether the total existed for savings is year or smaller ban the Soul,00 hurdle, respectively bu 1 5 In cell F56 type either true or False depcoding on whether the statement in cell C4 is true rise Lespectively Chantero + ty RA A w x P B0% Excel File Edit View insert Format Tools Data Window Help Automne BE- Di Costanza Zulter Spreadsheet_Chapter_5_Start Home insert Draw Page Layout Formulas Data Review View Tell me ingen > General X 29 14 Times New Roman - APN Dace - $ % ) Conditional Format Cel Formatting Table Styl Formal w B H29 M Puius 11 2 2 1 Requirements 1 In collete 14:44, by using bell terences to the given dats, calculate the presente nf the cash How for years 2020 thru 2050.tint: In cell F40, you will need to enter the musted PV fiction =PVIST529.519$39.0,-PSF530.040-51539,0,000)) and copy/paste it into colls F41:44 ? Lol.45 and 445 by using cell references to the given data, calculate the total cash flow and total pauscht value, spectively. 3 In Gall G49, lypeither should or should not depending on whether you wuld recommend undertaking the projectors, respectively Indell H50, pe other greater or smaller depending on whether the total expectat future savings is pretter or staller than the S60,000 hurdle, respectively 5 In collF56, type ci True or Fals depending on whether the selementi call C54 is true or le respectively 6 Save the book. Close the work book and the exit Excel Submit the wickbooks directed 1 1 10 31 b 8 Chaplus + ty * 22 R A me Insert Draw Page Layout Formulas Watu Review VIEW reme Times New Roman 14 ' 29 General X ID HL D% CA A $% % 0 Conditional Format Cell Formatting as Table Styles 29 fax Spreadsheet Exercise: Chapter 5 M At the end of 2019. Uma Corporation is considering a major long-term project in an effort to remain competitive in its industry The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm ifit acts soon. Specifically, they estimate that a mixed stream of future cash flow suvings will occur at the end of the years 2020 through 2025. The years 2026 through 2030 will see consecutive $90,0000 cash flow savings at the end of each year. The fin estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the ycars 2026 through 2030 will be 11% The project managers will find the project acceptable if it results in present cush flow savings of at least $860,000. The following cash flow savings data are supplied to the finance department for anulysis. Important: Do not use cell references to cells in rows 7 to 17. For all required answers, use cell references to values starting in tow 29) 3 5 3 10 n 12 13 14 End of year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cash flow savings S 110,000 120,000 130,000 150.000 160,000 150.000 90,000 90,000 90.000 90,000 90,000 16 17 15 19 20 To Do Creale spreadsheets similar to Table 5.2, and then answer the following questions, . Dxtermine the present value of the future cash flow savings expected to be generated by this project, Chapter 5 + 02 otv a 5 7 Excel File Edit View insert Format AutoSave OFF OFFRESU Tools Data Window Help Di Costanzo_Zutter_Spreadsheet_Chapter_5_Start Data Review View Tell me Home Insert Draw Page Layout Formulas Times New Roman PA A General Insert 5x Deleta Paste BIU $ % 8-9 Conditional Format Call Formatting as Table Styles Format H29 H M N C D 30 To Do Create spread liccts similar to Table 52 and then answer the following questions Determine the present value of the future cash flow savings expected to be generated by this project b. Basod solely on the one criterion set by management, should the firmu undertake this specitic project? Explain c. What is the interest rate risk," and how might it influence the recommendation made in part b? Explain 22 3 Solution 25 20 27 28 u. Delamine the value of the future cash flow savings expected to be generated by this projet. Discount mate for years 2020 2025 Discount rate for years 2026 - 2030 7% 11% 30 31 17 Present Value 33 S # as 30 Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (m) 1 2 2 4 3 6 7 12 3 Cash Flow 110,000 120.000 130.000 150,000 160,000 150.000 90,000 90.000 90.000 90,000 90.000 39 10 8 42 LE 10 11 14 15 h. Based solely be one criterion Net by management should the llum undertake this specific project Explain Chapter 5 + V 22 Excel File Edit View Insert Format Tools AutoSaver BBS Data Window Help Di Costanzo Zutter_Spreadsheet_Chapter 5 Start Formulas Data Review Page Layout Home View Tell me Insert Draw Insert General Times New Roman 14 A S962 Conditional For Cell Formatting Table Styles Format POGI A B H29 M N D 47 48 b. Based solely on the one criterion set by management, shold horm undertake this specific project? Txplain Based solely on the criteria ser by management, the fimm of the expected luge savings total S undertake this project as the prest value than the $860.000 hundle. - which is su 5 5 53 c. What is the interest rate risk," and how might influence the recommendation made in part ! Explain. . change in the value of an asset bold tree. If the the interest me ware totis just 1 percent, the present value of the expected savings would fall below the waited $86000limis set by mangcauet 54 56 Is the above statement nie or false! 33 58 Requirements In cell range T34:444, hy using cell references to the given dela, calculate ile present value of the cash flow for ca 2020 thru 2030, (Hint: ta ochi F40. you will need to cater tho nustod PV fonction -PV(FS29.SD$39.0,-PVISFS 30,140-SDS39,0.-F.40%) and copy paste it into cells F41:44 Points 11 2 13 1 1 ? In cells F 45 and F45lvy using ecli references to the given 1, calculate the total cash flow and total presentaluc, respectively In cell G49, type either should or should not depending on whether you would recommend undertaking the project or not, respectively 4 In cell HSD.lype either greater or smaller depending on whether the total existed for savings is year or smaller ban the Soul,00 hurdle, respectively bu 1 5 In cell F56 type either true or False depcoding on whether the statement in cell C4 is true rise Lespectively Chantero + ty RA A w x P B0% Excel File Edit View insert Format Tools Data Window Help Automne BE- Di Costanza Zulter Spreadsheet_Chapter_5_Start Home insert Draw Page Layout Formulas Data Review View Tell me ingen > General X 29 14 Times New Roman - APN Dace - $ % ) Conditional Format Cel Formatting Table Styl Formal w B H29 M Puius 11 2 2 1 Requirements 1 In collete 14:44, by using bell terences to the given dats, calculate the presente nf the cash How for years 2020 thru 2050.tint: In cell F40, you will need to enter the musted PV fiction =PVIST529.519$39.0,-PSF530.040-51539,0,000)) and copy/paste it into colls F41:44 ? Lol.45 and 445 by using cell references to the given data, calculate the total cash flow and total pauscht value, spectively. 3 In Gall G49, lypeither should or should not depending on whether you wuld recommend undertaking the projectors, respectively Indell H50, pe other greater or smaller depending on whether the total expectat future savings is pretter or staller than the S60,000 hurdle, respectively 5 In collF56, type ci True or Fals depending on whether the selementi call C54 is true or le respectively 6 Save the book. Close the work book and the exit Excel Submit the wickbooks directed 1 1 10 31 b 8 Chaplus + ty * 22 R A