Please Help!!!

Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is $27,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. Cashflow (The cashflow and formulas work horizonally as well) Payback Method (Set up a running balance to calculate in excel, you may complete the partial year manually and provide the answer.) If the cost of capital is 12 percent, what is the net present value of selecting the machine? NPV What is the internal rate of return? IRR Should the project be accepted? Why? Reference decision critieria for NPV and IRR. 1) Eliminate the Terminal Value from the cashflow 2) Expand the planning period from 8 years to 20 years 3) Do not increase ARPU beyond year 8 , nor change market share. 4) Adjust amortization as needed. 5) Recalculate payback, NPV, and IRR using 20 years. 6) List Payback, NPV, and IRR from 8 year case, and calculate the difference Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is $27,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. Cashflow (The cashflow and formulas work horizonally as well) Payback Method (Set up a running balance to calculate in excel, you may complete the partial year manually and provide the answer.) If the cost of capital is 12 percent, what is the net present value of selecting the machine? IRR Should the project be accepted? Why? Reference decision critieria for NPV and IRR. 1) Eliminate the Terminal Value from the cashflow 2) Expand the planning period from 8 years to 20 years 3) Do not increase ARPU beyond year 8 , nor change market share. 4) Adjust amortization as needed. 5) Recalculate payback, NPV, and IRR using 20 years. 6) List Payback, NPV, and IRR from 8 year case, and calculate the difference Explain the difference. 1) Please show the formula for the revenue calculation as asked for each year, and other calculated fields. Hard to get marks if it is a hard coded number, without any supporting calculation / logic. 2) For the capital expenditure in Year 0 , assume 100% of the town is installed, even though a good many are not customers at year 1. However, during the years market share increases, which would be difficult to do if the home was not already connected to the network. Show your work to support capital expenditure at Year 0. 3) Revenue calculation - 12 months in a year. You may want to take that into consideration with the fact that customer revenue is given as ARPU (Average Revenue per User) per month! We well, 100% market share means 875 homes, so if different market shares are given, that determines your customers for that year. 4) If you wish to provide an updated version on the assignment, please email to me, if Moodle has already been used. Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is $27,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. Cashflow (The cashflow and formulas work horizonally as well) Payback Method (Set up a running balance to calculate in excel, you may complete the partial year manually and provide the answer.) If the cost of capital is 12 percent, what is the net present value of selecting the machine? NPV What is the internal rate of return? IRR Should the project be accepted? Why? Reference decision critieria for NPV and IRR. 1) Eliminate the Terminal Value from the cashflow 2) Expand the planning period from 8 years to 20 years 3) Do not increase ARPU beyond year 8 , nor change market share. 4) Adjust amortization as needed. 5) Recalculate payback, NPV, and IRR using 20 years. 6) List Payback, NPV, and IRR from 8 year case, and calculate the difference Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is $27,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. Cashflow (The cashflow and formulas work horizonally as well) Payback Method (Set up a running balance to calculate in excel, you may complete the partial year manually and provide the answer.) If the cost of capital is 12 percent, what is the net present value of selecting the machine? IRR Should the project be accepted? Why? Reference decision critieria for NPV and IRR. 1) Eliminate the Terminal Value from the cashflow 2) Expand the planning period from 8 years to 20 years 3) Do not increase ARPU beyond year 8 , nor change market share. 4) Adjust amortization as needed. 5) Recalculate payback, NPV, and IRR using 20 years. 6) List Payback, NPV, and IRR from 8 year case, and calculate the difference Explain the difference. 1) Please show the formula for the revenue calculation as asked for each year, and other calculated fields. Hard to get marks if it is a hard coded number, without any supporting calculation / logic. 2) For the capital expenditure in Year 0 , assume 100% of the town is installed, even though a good many are not customers at year 1. However, during the years market share increases, which would be difficult to do if the home was not already connected to the network. Show your work to support capital expenditure at Year 0. 3) Revenue calculation - 12 months in a year. You may want to take that into consideration with the fact that customer revenue is given as ARPU (Average Revenue per User) per month! We well, 100% market share means 875 homes, so if different market shares are given, that determines your customers for that year. 4) If you wish to provide an updated version on the assignment, please email to me, if Moodle has already been used