Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ENTER THE FORMULAS , not just the number :) ( i dont understand how the formulas work on excel ) there isnt anything on

PLEASE ENTER THE FORMULAS , not just the number :) ( i dont understand how the formulas work on excel )
image text in transcribed
image text in transcribed
image text in transcribed
there isnt anything on here that mentions initial investment
1. Complete the capital budgeting methods. KB Companion of Cat Munting Methods REVIEW VIW FILE HOME INSERT PAGE LAYOUT FORMULAS DATA X Call - 11 AA BrWrap Test - . BAN Sort Paste BIV- Merge Center - $.$. Inwart alta Tona Conditional Format Call Potting Table Syed Clipboard Font Algement Ne ting D18 X c 4 Salvage value 225 000 5 6 The project would provide et operating income each year as follows: 7 Sales s 2.750.000 8 Variable expenses 1.800,000 9 Contribution margin $ 1.150.000 10 Fixed expenses Saluries, rent and other fixed out of pocket costs 5 $20.000 12 Depreciation 350,000 13 Total fixed expenses 820000 s 14 Net operating income 280.000 15 16 Cost of Capital 1895 12 18 11.Compute the annual net cash inflow from the project. 19 20. 2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvage value in years Year 21 20 2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvage value in year 5 21 Year 22 0 2 3 23 Net cash flow 24 Discount Factor 1 (1) 1.000 25 Present value of the cash flows 26 Net present value 27 23 3. Use Excel's NPV function to compute the present value of the cash flows from years 13. Do not include the one lavestment atter 29 NPV of Cash Flows from Year 1-5 30 Deduct the cost of the investment 31 Net present value 32 Write an iflhen statement to ACCEPT OF REJECT the project bised on NPV 33 4. Use Excel'IRR function to compute the projects internal rate of return 35 Write an if the statement to ACCEPT OF RRJECT the project based on TRR c 33 28 3. Use Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investirent at time hero 29 NPV of Cash Flows from Years 1-5 30 Deduct the cost of the investment 31 Net present value 32 Write an ifthen statement to ACCEPT or REJECT the project based on NPV 34 4. Use Excel's IRR function to compute the project's internal rate of retum 35 Write an ifthen statement to ACCEPT or REJECT the project based on IRR 36 37 5. Compute the project's payback period. 39 6. Compute the project's accounting rate of return. ve 38 40

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_2

Step: 3

blur-text-image_3

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

International Accounting

Authors: Shirine Rathore

2nd Edition

8120336739, 9788120336735

More Books

Students also viewed these Accounting questions