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Pleas show excel formulas plugged in just like the excel posted and explain. This is what I've done so far but I do not undestand!
Pleas show excel formulas plugged in just like the excel posted and explain. This is what I've done so far but I do not undestand! I will give good rating if answered with excel formulas shown. thank you!
it falls to $80,000 due to the heat in the factory. In January 2017, you get an production of the factory is $100,000 except during June-September, when air-conditioning system is $150,000, and its expected life span is 10 years. If offer to install an air-conditioning system in your factory. The cost of the will equal the production in the winter months. However, the cost of oper- you install the air-conditioning system, the production in the summer months ating the air-conditioning system is $9,000 per month (only in the 4 months that you operate the system). You will also need to pay a maintenance fee he monthly 8. You are the owner of a factory located in a hot of $5,000 annually in October. Also assume that the depreciation costs are recognized in December of each year and that taxes are paid in December of each year. The depreciation is straight-line to salvage value zero (which is also the anticipated terminal value). a. What is the December equivalent pre-tax and pre-depreciation annual profits? b. What is the NPV of purchasing the air-conditioning system if the discount rate is 12% and corporate tax rate is 35%? 116 A D E F G H J L M N o Q R S T 1 AIR CONDITIONING SYSTEM 2 Discount rate 12% 3 Corporate tax 35% 4 Air conditioner cost 150,000 5 Air conditioner life span 10 6 Air conditional annual depreciation 15,000 =B4/B5 7 Air conditioner operating cost (June-September) 9,000
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