Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

One spreadsheet assignment involved estimating the cash flows for a capital budgeting project. The financial projections and inputs are listed below. What is the Excel

image text in transcribed
image text in transcribed
image text in transcribed
One spreadsheet assignment involved estimating the cash flows for a capital budgeting project. The financial projections and inputs are listed below. What is the Excel formula needed to calculate the desired value for spreadsheet cell F9? OUTPUTS: (ARS figures in thousands INPUTS: All doller fleres are in thousands) Austin Input Austin building con Estimated Austin buliding alage value (5) $ 50,000 $ 12,000 2019 Year1 $ 4,200 $ 20210 Years ATotal Revenue Acost of Revenue Savings 2020 Yeer $ 40005 2020 Year 4 05 4000 5 4,100 1000 Austin Annual inputs State of Texas tax-free wbudy 5 6,000 Austin savings in cost of labor & shipping costs $7,000 Lease payment Austin tand) $ 1.000 Cost to relocate equipment to Austin $ 15,000 Texas State property taxes $ 3,000 ARSD Expense Selling General Admin Exp AleasePayment Saving A Deprec/Amort Tax Savings Property Taxes AstateofuxasSubsidy AOC $ $ $ 4,900 $ 5,900 7,7005 6,000 $ 29,400 $ 4,900 5 7,560 7,7005 6,000 $ 31.06R$ 4,900 3.122 7,700 6.000 26.622 05 4000 $ 2012 5600 5000 $ 235565 40 DOO 5.000 SOOG 20.300 $ San Diego Annual inputs State of California property taxes Building and fand lease payments $ 14,000 $ 8,000 Outlay Relocation Cost $ (15,000) Outley Buildings S (50.000) Building Salvage Value (Austin) Taxon Salvage Value Gain (Austin) 12.000 5 5 Company Input Marginal tax rate Cost of capital SON 131 ANCE $ 165,000) 29.400 5 31,068 $ 26,622 23556 5 43,700 NPV $ Austin building depreciation (MACRS) 41.964 Year 1 0.3333 Year 2 0.4445 Year 3 Year 0.1481 0.0741 Select one: a. =(B16-B10)*(1 - B19) b. =(B10)*(1 - B19) Oc=(816-B10)(1 - B19) d. =(B16) (1 - B19) One spreadsheet assignment involved estimating the cash flows for a capital budgeting project. The finan are listed below. What is the Excel formula needed to calculate the desired value for spreadsheet cell F97 INPUTS: OUTPUTS: (All dollar figures are in Sthousands) (All $ figures in thousands) Austin Inputs: Austin building cost $ 50,000 ATotal Revenue Estimated Austin building salvage value (-5) $ 12,000 Acost of Revenue Savings 2019 2020 Year 1 Your 2 5 4,900 $ 4.900 $ $ Austin Annual Inputs: State of Texas tax-free subsidy Austin savings in cost of labor & shipping costs Lease payment (Austin land) Cost to relocate equipment to Austin Texas State property taxes $ 6,000 $ 7,000 $ 1,000 $ 15,000 $ 3,000 AR&D Expense ASelling General & Admin Exp Alease Payment Savings ADeprec/Amort Tax Savings AProperty Taxes AStateOfTexasSubsidy OCIE $ $ $ $ 4,900 5,9005 7,7005 6,000 S 29.400 4900 7,568 7,700 5 6.000 $ 31.068 San Diego Annual Inputs: State of California property taxes Building and land lease payments $ 14,000 $ 8,000 Outlay: Relocation Cost $(15,000) Outlay: Buildings $ (50,000) Buliding Salvage Value (Austin) Tax on Salvage Value Gain (Austin) 30% 13% 31.05 29,400 5 $ (65,000) S ANCE Company Inputs: Marginal tax rate Cost of capital Austin building depreciation % (MACRS) NPV $ 41,964 Year 1 0.3333 Year 2 0.4445 Year 3 Year 4 0.1481 0.0741 Select one: O a. =(B16-B10)"(1 - B19) h (B10111 - B19) nt involved estimating the cash flows for a capital budgeting project. The financial projections and inputs ne Excel formula needed to calculate the desired value for spreadsheet cell F9? OUTPUTS: (All S figures in thousands) sands) 2021E Year 3 2020 Year 5 2019E Year 1 $ 4,900 $ 2020E Year 2 $ 4,900 $ 2020 Year 4 0$ 4000 $ $ 50,000 $ 12,000 ATotal Revenue Acost of Revenue Savings $ $ 4.900 4,000 walue (tes) hipping costs $ 6,000 $ 7,000 $ 1,000 $ 15,000 $ 3,000 AR&D Expense ASelling General & Admin Exp ALeasePayment Savings ADeprec/Amort Tax Savings AProperty Taxes AstateOfTexasSubsidy OCE $ $ $ $ $ $ $ $ $ 4,900 $ 5,900 $ 7,700 $ 6,000 $ 29,400 $ $ $ 4,900 $ 7,568$ 7,700 $ 6,000 $ 31,068 $ 4,900 3,1225 7,700 6,000 26,622 05 OS 4300$ 2,0125 5600 5 5000 $ 23556 $ 4,000 900 5,600 5,000 20,300 atin $ 14,000 $ 8,000 Outlay: Relocation Cost $ (15,000) Outlay: Buildings $ (50,000) Building Salvage Value (Austin) Tax on Salvage Value Gain (Austin) $ $ 12,000 11,400 43,700 23556 5 26,622 31,068 5 30% 13% 29,400 $ $ (65,000) $ ANCE $ 41,964 NPV (MACRS) Year 1 0.3333 Year 2 0.4445 Year 3 Year 4 0.1481 0.0741 B19)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elliot Wave Techniques Simplified How To Use The Probability Matrix To Profit On More Trades

Authors: Bennett A. McDowell

1st Edition

0071819304,0071819312

More Books

Students also viewed these Finance questions

Question

2. What are the functions of investment banks in the IPO process?

Answered: 1 week ago