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I specifically would like the calculations on my ProForma Income Statement checked. I included everythjng for your reference.

Capital Budgeting Electron Americas can manufacture the new smart phones for $350 each in variable costs. Fixed costs for the operation are estimated to run $4.25 million per year. The estimated sales volume is 80,000; 90,000; 120,000; 130,000; and 140,000 per year for the next five years, respectively. The unit price of the new smart phone will be $600. The necessary equipment can be purchased for $65 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $3.5 million. The effective tax rate for the company is 21%. The project requires no initial NWC investment, and it requires NWC balance equal to 15% of sales, thereafter. The required return for the project is 14%. Mr Scott has asked you to prepare a report that answers the following questions. G H I Year 1 80,000 Year 2 90,000 D Year 3 120,000 E Year 4 130,000 F Year 5 140,000 2 Units Sales 4 Equipment Cost 5 Salvage value 65,000,000 3,500,000 600 350 4,250,000 7 Units Price 8 Variable cost (per unit) 9 Fixed costs (per year) 10 11 Tax rate 12 NWC (% of sales) 13. Required return 14 Required Payback Period (years) 15 Required Discounted Payback Period (years) 16 17 MACRS Schedule 18 3-year 19 5-year 20 7-year 2196 1596 1496 Year 5 Year 6 Year 7 Year 8 Year 1 33.33% 20.00% 14.2996 Year 2 44.4596 32.0096 24.4996 Year 3 14.81% 19.20% 17.49% Year 4 7.41% 11.5296 12.499 11.52% 8.93% 5.76% 8.92% 8.93% 4.46% Get & Transform Data Queries & Connect Sort Filter PilDuples Validation Data Tools 1 Pro Forma Income Statements 2 Year 3 Revenues 4 Variable costs 5 Fixed costs 6 Depreciation 7 EBIT 8 Taxes (219) 9 Net income 10 OCF 48,000,000 28,000,000 4,250,000 9,288,500 6,461,500 1,356,915 5,104,585 14,393,085 54,000,000 31,500,000 4,250,000 15,918500 2,331,500 489,615 1,841,885 17.760,385 72,000,000 78,000,000 42,000,000 45,500,000 4,250,000 4,250,000 11,368,500 8.118,500 14,381,500 20,131,500 3,020.1154 ,227,615 11,361,385 15.903,885 22,729,885 24,022,385 84,000,000 49,000,000 4,250,000 5,804,500 24,945,500 5,238,555 19,706.945 25,511.15 13 Net Working Capital 14 Year 15 Initial NWC 16 Ending NWC 17 NWC cash flow 11,700,000 7,200,000 (7.200,000) 7,200,000 8,100,000 (900,000) 8,100,000 10,800,000 (2.700.000) 10,800,000 11,700,000 (900,000) 11.700,000 18 19. Salvage Value 20 Market value of salvage 21 Book value of salvage 22 Taxes on sale: 23 Aftertax salvage value: 3,500,000 14,501,500 (2,310,315) 5,810,315 14,393,085 (7.200,000) 17.760,385 (900,000) 22,729,885 (2,700,000) 24,022,385 (900,000) 25 Project Cash Flows 26 Year 27 OCF 28 Change in NWC 29 Capital spending 30 Total cash flow 31 Cumulative cash flow 32 Discounted cash flows 33 Cumulative discounted cash flow (65,000,000 (65,000,000) (65,000,000) (65,000,000) (65,000,000) 7,193,085 (57,806,915) 6,309,724 (58,690,276 16,860,385 (40.946,530) 12,973,519 (45,716,758) 20,029,885 (20,916,645) 1 3,519,602 (32,197,156) 23,122,385 2,205,740 13,690,30B (18,506,848) 25,511,445 11,700,000 5,810,315 43,021,760 45,227,500 22,344,154 3,837,306 DIE 35 Question 7 36 NPV 37 Decision? 3,837 306 Accept 3.90 Using the COUNTIF Formula 4.83 Using the COUNTIF Formula 39 Question 40 Payback Period 41 Decision? 42 43 Question 2 44 Discounted Payback Period 45 Decision? 46 47 Question 10 48 IRR 49 Decision? 50 51 Question 11 OS2 Profitability Index 53 Decision? 1.70 55 Question 12 56 Indiffirent Sales Price 586.63 Using Goal Seek NPV Profile $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 58 Question 13 59 600 .00% 61 5.000 10.0006 15.0006 20.000 25.00% 30.00 35.00 40.000 45.00% 50.00% NPV $45,227,500 $27,177.509 $13.028,148 $1.783,421 (57265471) (514,631,285) (520690573) ($25723,711) ($29.942,151) ($33.507,255) (536543523) IS B ON 10 BON 20 30N 40 BON SOM 6000 15:20,000000 ($30,000,000 150 1550 000 000