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please add formulas to show work done on the spreadsheet Chapter 9 Problems Problem 1 Depot Casino Corporation is considering an expansion of their busiest
please add formulas to show work done on the spreadsheet
Chapter 9 Problems Problem 1 Depot Casino Corporation is considering an expansion of their busiest casino. Depot Casino has already conducted and paid $50K for a marketing survey. The expansion will cost $2.5 million for the assets including delivery costs and all the construction costs. In addition, $500K in net working capital will be needed immediately. Marketing Survey Expansion Costs Additional Working Capital Needed $50,000 $2,500,000 $500,000 Compute the net investment of this expansion project. Net Investment Problem 2 Kyoto Sushi Incorporated is considering the replacement of their sushi display cases. The current cases were purchased 3 years ago at a total cost of $40,000 and are being depreciated straight-line to a zero value over 8 years. Display Case Purchase Price Total Depreciation Term (Years) Years Depreciated Effective Tax Rate $40,000 8 3 40% If Kyoto Sushi sells these sushi display cases at the following prices, what are the after-tax cash flows to Kyoto Sushi? Use a 40 percent effective tax rate. Sale Price $25,000 $30,000 $35,000 $10,000 After Tax Cash Flow Problem 3 Feinstein's Finest is considering opening a new pub in the southest part of town. The building will cost $1.5 million, and fixtures such aas bars, kitchen equipment and so on, will cost another $200K including installation costs. Stocking the pub with inventory before it opens will cost another $100K. Land for the building site cost Feinstein $300K several years ago, but now the land could be sold to net Feinstein $1.0M after-tax. Building Cost Fixtures (includes installation costs) Inventory Land Cost (Historical) Land Value (Present) $1,500,000 $200,000 $100,000 $300,000 $1,000,000 Compute the net investment for Feinstein's Finest new pub Net Investment Problem 4 Kilby's Casinos is considering replacing their craps tables. They were purchased 4 years ago for a total cost of $100K and are being depreciated using straight-line depreciation to a zero value over 10 years. Craps Tables Purchase Price Total Depreciation Term (Years) Years Depreciated Effective Tax Rate $100,000 10 4 40% If these crap tables are sold at the following prices, what are the after-tax cash flows to Kilby's Casinos? Use 40 percent for the effective tax rate. Sale Price $75,000 $60,000 $20,000 After Tax Cash Flow ms asino. Depot Casino has already conducted and paid e assets including delivery costs and all the eded immediately. isplay cases. The current cases were purchased 3 ne to a zero value over 8 years. at are the after-tax cash flows to Kyoto Sushi? Use a of town. The building will cost $1.5 million, and 200K including installation costs. Stocking the pub lding site cost Feinstein $300K several years ago, but rchased 4 years ago for a total cost of $100K and are 0 years. x cash flows to Kilby's Casinos? Use 40 percent forStep by Step Solution
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