Please Anwer with Excel and with Formulas thank you!

Zoom into the image if it is too blury. I need the correct inputs for the yellow cells!

B C D E F G H K L M N 0 P Q R S T U 15 16 You are Executive Vice President of Operations of a company that produces and distributes household goods. 17 Your company manufactures some of its products and purchases and resells other products. 18 Your company has been distributing brushes purchased from a third-party and you are analyzing the economics of insourcing (manufacturing internally) the supply. 19 These are the facts that you need to incorporate into a model: 20 Your company has been spending $200,000 annually to purchase brushes. This expense will cease if supply of brushes is insourced. 21 You estimate that manufacturing inhouse will cost $100,000 in labor and $10,000 in overhead. 22 A significant investment in equipment will be required and the investment will be straight-line depreciated over a 5 year useful life (no residual value). 23 Additional work needs to be done to firm up an estimate but you believe the equipment will cost between $200,000 and $350,000. 24 The Treasurer of your company needs to decide how the investment would be financed and has asked you to analyze the sensitivity of the return to financing options. 25 At the end of the previous year, 2021, your company had $200,000 in Cash, zero debt, and $100,000 in Equity on its Balance Sheet. 26 For the purpose of developing the model, you have selected some initial values for the two independent variables. 27 28 Investment Required 300,000 29 30 Percent Debt Financed 50% 31 32 You are responsible for developing a model that analyzes the potential investment, providing valuations of alternate strategies and a sensitivity analysis of the results. 33 The following model should include only the incremental impact on the Income Statement, Balance Sheet and Cash Flow Statement. 34 Please enter formula in the yellow boxes below to develop the model. 35 36 0 (Current) 2 37 2021 2022 2023 2024 2025 2026 2027 Hints 38 Income Statement 39 Finished Goods Expense 440,000 440,000 440,000 440,000 440,000 Shown as positive because it is an expense that will cease to exist 40 Depreciation (60,000) (60,000) (60,000) (60,000) (60,000) 41 Labor (220,000) (220,000) (220,000) (220,000) (220,000) 42 Overhead (10,000) (10,000) (10,000) (10,000) (10,000) 43 EBIT 150,000 150,000 150,000 150,000 150,000 44 Interest Income (5% interest rate) Interest Income is based on a 5% interest rate applied to prior year Net Cash (Cash minus Debt) 45 Pretax 150,000 150,000 150,000 150,000 150,000 46 Tax (30%tax rate) 45,000 45,000 45,000 45,000 45,000 47 Net Income 105,000 105,000 105,000 105,000 105,000 48 49 Balance Sheet (change in account) 50 Cash 200,000 50,000 Cash equal to that of the previous year plus Cash Generated 51 PP&E 0 300,000 PP&E is equal to that of the previous year minus Depreciation plus CapEx. (However, CapEx is shown as a negative on the Cash Flow Statement so remember to change the sign to make 52 Debt 0 150,000 Debt is equal to that of the previous year plus Issues (Retirement) of Debt 53 Equity 100,000 100,000 Equity is equal to that of the previous year plus Net Income (there are no Dividends) 54 55 Cash Flow Statement 56 Net Income Net Income from the Income Statement 57 Depreciation Investment Required spread of the useful life (5 years) H M N O P R S U Net Income from the Income Statement Investment Required spread of the useful life (5 years) B C D E F. G 54 55 Cash Flow Statement 56 Net Income 57 Depreciation 58 Cash Flow from Operations 59 Capex (300,000) 0 60 Cash Flow from Investing (300,000) 61 Issues (Retirement) Debt 150,000 62 Cash Flow from Financing 150,000 63 Cash Generated (150,000) 64 65 Write a fomula that calculates the Net Present Value (NPV) of the cash flows in Row 63 using a 10% discount factor. 0 0 Debt based on Percent Debt Financed with 1/5th retired each year. Must be a formula based on D52 enabling changed assumptions of percent debt financed. BB5%Bug 866589 67 68 Change the 'Investment Required', cell D28, to $200,000 and enter the resulting NPV value (not the formula) in the yellow box below. 70 71 Keeping the $200,000 'Investment Required' change the 'Percent Debt Financed' to 0% and enter the resulting NPV value (not the formula) in the yellow box below. 72 73 74 Below we present a Excel Data Table 75 The Excel Data Table functionality permits users to identify a set of potential value for two independent variables. 76 The functionality automatically analyzes a formula that is dependent on these two variables and presents the results of all combinations of the two independent variables. 77 The 'EXCEL Financial Functions' Sheet presents how to create a Data Table, but the output is presented here for those that do not want to dive any deeper. 78 79 Percent Debt Financed 80 0% 25% 50% 75% 100% 81 200,000 82 Investment 250,000 83 Required 300,000 84 350,000 85 86 which would generate the higher NPV? 87 88 89 90 91 92 93 94 95 96 B C D E F G H K L M N 0 P Q R S T U 15 16 You are Executive Vice President of Operations of a company that produces and distributes household goods. 17 Your company manufactures some of its products and purchases and resells other products. 18 Your company has been distributing brushes purchased from a third-party and you are analyzing the economics of insourcing (manufacturing internally) the supply. 19 These are the facts that you need to incorporate into a model: 20 Your company has been spending $200,000 annually to purchase brushes. This expense will cease if supply of brushes is insourced. 21 You estimate that manufacturing inhouse will cost $100,000 in labor and $10,000 in overhead. 22 A significant investment in equipment will be required and the investment will be straight-line depreciated over a 5 year useful life (no residual value). 23 Additional work needs to be done to firm up an estimate but you believe the equipment will cost between $200,000 and $350,000. 24 The Treasurer of your company needs to decide how the investment would be financed and has asked you to analyze the sensitivity of the return to financing options. 25 At the end of the previous year, 2021, your company had $200,000 in Cash, zero debt, and $100,000 in Equity on its Balance Sheet. 26 For the purpose of developing the model, you have selected some initial values for the two independent variables. 27 28 Investment Required 300,000 29 30 Percent Debt Financed 50% 31 32 You are responsible for developing a model that analyzes the potential investment, providing valuations of alternate strategies and a sensitivity analysis of the results. 33 The following model should include only the incremental impact on the Income Statement, Balance Sheet and Cash Flow Statement. 34 Please enter formula in the yellow boxes below to develop the model. 35 36 0 (Current) 2 37 2021 2022 2023 2024 2025 2026 2027 Hints 38 Income Statement 39 Finished Goods Expense 440,000 440,000 440,000 440,000 440,000 Shown as positive because it is an expense that will cease to exist 40 Depreciation (60,000) (60,000) (60,000) (60,000) (60,000) 41 Labor (220,000) (220,000) (220,000) (220,000) (220,000) 42 Overhead (10,000) (10,000) (10,000) (10,000) (10,000) 43 EBIT 150,000 150,000 150,000 150,000 150,000 44 Interest Income (5% interest rate) Interest Income is based on a 5% interest rate applied to prior year Net Cash (Cash minus Debt) 45 Pretax 150,000 150,000 150,000 150,000 150,000 46 Tax (30%tax rate) 45,000 45,000 45,000 45,000 45,000 47 Net Income 105,000 105,000 105,000 105,000 105,000 48 49 Balance Sheet (change in account) 50 Cash 200,000 50,000 Cash equal to that of the previous year plus Cash Generated 51 PP&E 0 300,000 PP&E is equal to that of the previous year minus Depreciation plus CapEx. (However, CapEx is shown as a negative on the Cash Flow Statement so remember to change the sign to make 52 Debt 0 150,000 Debt is equal to that of the previous year plus Issues (Retirement) of Debt 53 Equity 100,000 100,000 Equity is equal to that of the previous year plus Net Income (there are no Dividends) 54 55 Cash Flow Statement 56 Net Income Net Income from the Income Statement 57 Depreciation Investment Required spread of the useful life (5 years) H M N O P R S U Net Income from the Income Statement Investment Required spread of the useful life (5 years) B C D E F. G 54 55 Cash Flow Statement 56 Net Income 57 Depreciation 58 Cash Flow from Operations 59 Capex (300,000) 0 60 Cash Flow from Investing (300,000) 61 Issues (Retirement) Debt 150,000 62 Cash Flow from Financing 150,000 63 Cash Generated (150,000) 64 65 Write a fomula that calculates the Net Present Value (NPV) of the cash flows in Row 63 using a 10% discount factor. 0 0 Debt based on Percent Debt Financed with 1/5th retired each year. Must be a formula based on D52 enabling changed assumptions of percent debt financed. BB5%Bug 866589 67 68 Change the 'Investment Required', cell D28, to $200,000 and enter the resulting NPV value (not the formula) in the yellow box below. 70 71 Keeping the $200,000 'Investment Required' change the 'Percent Debt Financed' to 0% and enter the resulting NPV value (not the formula) in the yellow box below. 72 73 74 Below we present a Excel Data Table 75 The Excel Data Table functionality permits users to identify a set of potential value for two independent variables. 76 The functionality automatically analyzes a formula that is dependent on these two variables and presents the results of all combinations of the two independent variables. 77 The 'EXCEL Financial Functions' Sheet presents how to create a Data Table, but the output is presented here for those that do not want to dive any deeper. 78 79 Percent Debt Financed 80 0% 25% 50% 75% 100% 81 200,000 82 Investment 250,000 83 Required 300,000 84 350,000 85 86 which would generate the higher NPV? 87 88 89 90 91 92 93 94 95 96