Please help fill out spreadsheet! Information is attached as well as screenshots of example cash flow estimation spreadsheets (just examples of how it should look). Will most definitely upvote for assistance! Thank you very much!!!

"Excel error" is not enough information for me to update my question. I can send pictures of my spreadsheet that I have filled out with data/answers. Please confirm the top portion of "Input Data" and WACC is correct on excel and disregard prior screenshots. Thank you!!!

Third post on this question: Please let someone else look at this; only need the WACC and Input Data verified. Disregard original post; there is nothing wrong with the excel. I have the correct formulas, just need to verify INPUT DATA and WACC per direct screenshots with this 3rd post. Disregard original (first) post and screenshots. Only look at this post/update please. I will attach the data and spreadsheet again below.

Above is the data to be verified for the below spreadsheet criteria/"Input Data":

WACC I got for this was 10.05%; please also verify if this is correct. Thank you!!! :-)

Adding spreadsheet screenshot again; I believe this was the one that was not clear. My apologies. Data Input to be verified invluding WACC please. Thank you!! :-)

The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. The new pumping system is classified by the IRS as 5 -year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price, P0, is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future. 2. Develop a capital budgeting schedule using the attached Cash Flow Estimation Worksheet (Excel spreadsheet) that should list all relevant cash flow items and amounts related to the replacement project over the 8 -year expected life of the new pumping system. (Reference Reading: "Cash Flow Analysis Example (RIC Project)", RI REPLACEMENT PROJECT ANALSSIS WORKSHEEI III TERMINAL YEAR CASH FLOWS 12 Estimated salvage value of new machine 13 Tax effect on sale of new machine 14 Retum of net working capital 15. Total termination cash flows W NET CASH FLOWS 16 Net cash flow time line (11,400.00) 3,184.00 3,760.00 2,320.00 1,936.00 3,800.00 V RESULTS NPV IRR MIRR Payback period \begin{tabular}{r|} \hline(388.77) \\ \hline 10.1% \\ \hline 10.7% \\ \hline .1 \\ \hline \end{tabular} Tax savings on sale of old equipment \begin{tabular}{|lr|} \hline Salvage value & $1,000 \\ \hline Book value & $2,500 \\ \hline Ordinary Income/Loss & ($1,500) \\ \hline Tax rate & 40% \\ \hline Tax crodit & $600 \\ \hline \end{tabular} Tax on salvage value of new equpment \begin{tabular}{|lr|} \hline Salvage value & $2,000.00 \\ \hline IncomelLoss & $0 \\ \hline Tax rate & $2,000.00 \\ \hline Tax paid & 0.40 \\ \hline & ($800.00) \\ \hline \end{tabular} Depreciation on new machine - MACRS 3-year class \begin{tabular}{|r|r|r|r|r|} \hline Yr & Rate & Cost & Annual Dop. & Book value \\ \hline 1 & 33% & $12,000 & $3,960 & $8,040 \\ \hline 2 & 45% & $12,000 & $5,400 & $2,640 \\ 3 & 15% & $12,000 & $1,800 & $840 \\ \hline 4 & 7% & $12,000 & $840 & $0 \\ \hline 5 & 0% & & $0 & $0 \\ \hline \end{tabular} Depreciation on old machine - Straight Line Cost Price Useful life Depreciable amount per year $7,500 15 $500 Payback Period Calculation Input Data (could be more or loss than those listed here) Cost of NEW equipment Annual dep of old equipment Salvage value new equipment OLD equipment's depreciable lfe left Cost of ald equipment Old equipment's depreciated years Depreciation of old equipment till date Annal cost savings Salvage value of old equipment Removal cost of old equipment Tax rate Removal cost of new equipment Net working capital requirement I INVESTMENT OUTLAY II OPERATING CASH FLOWS OVER THE PROJECT'S LIFE OPERATING CASH FLOWS OVER THE PROJECTS LIFE III TERMINAL YEAR CASH FLOWS \begin{tabular}{|c|c|} \hline 30 & 13 \\ \hline 31 & 14 \\ \hline 32 & 15 \\ \hline 33 & 16 \\ \hline 34 & 17 \\ \hline 5 & \end{tabular} 36 IV NET CASH FLOWS \begin{tabular}{l|l} 33 & \\ \hline 3 & RESULTS \end{tabular} 40NPV 41 IRR 42 MIRR 43 Payback period = DECISION BASED ON YOUR ANALYSIS: 1. The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. 2. The new pumping system is classified by the IRS as 5 -year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. 3. The existing pumping system was purchased at $45,000 eight years ago and has been 3. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. 4. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. 5. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used. 6. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price. P0, is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. 7. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future. Input Data (could be more or loss than those listed here) Weight=1-debtratio1.25=.75=75% Cost=Dividend(1+g/P+g)(21.04/26+.04)=.12100=12 WACC =.7512+.256(10.3)=10.05% WACC 10.05% 1. The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. 2. The new pumping system is classified by the IRS as 5-year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. 3. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. 4. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. 5. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used 6. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price. P0. is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. 7. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future FALCONVILLE PUMP COMPANY -CASH FLOW ESTIMATION WORKSHEET mput Data (could be more or less than those listed here) Input Data (could be more or less than those listed here) The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. The new pumping system is classified by the IRS as 5 -year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price, P0, is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future. 2. Develop a capital budgeting schedule using the attached Cash Flow Estimation Worksheet (Excel spreadsheet) that should list all relevant cash flow items and amounts related to the replacement project over the 8 -year expected life of the new pumping system. (Reference Reading: "Cash Flow Analysis Example (RIC Project)", RI REPLACEMENT PROJECT ANALSSIS WORKSHEEI III TERMINAL YEAR CASH FLOWS 12 Estimated salvage value of new machine 13 Tax effect on sale of new machine 14 Retum of net working capital 15. Total termination cash flows W NET CASH FLOWS 16 Net cash flow time line (11,400.00) 3,184.00 3,760.00 2,320.00 1,936.00 3,800.00 V RESULTS NPV IRR MIRR Payback period \begin{tabular}{r|} \hline(388.77) \\ \hline 10.1% \\ \hline 10.7% \\ \hline .1 \\ \hline \end{tabular} Tax savings on sale of old equipment \begin{tabular}{|lr|} \hline Salvage value & $1,000 \\ \hline Book value & $2,500 \\ \hline Ordinary Income/Loss & ($1,500) \\ \hline Tax rate & 40% \\ \hline Tax crodit & $600 \\ \hline \end{tabular} Tax on salvage value of new equpment \begin{tabular}{|lr|} \hline Salvage value & $2,000.00 \\ \hline IncomelLoss & $0 \\ \hline Tax rate & $2,000.00 \\ \hline Tax paid & 0.40 \\ \hline & ($800.00) \\ \hline \end{tabular} Depreciation on new machine - MACRS 3-year class \begin{tabular}{|r|r|r|r|r|} \hline Yr & Rate & Cost & Annual Dop. & Book value \\ \hline 1 & 33% & $12,000 & $3,960 & $8,040 \\ \hline 2 & 45% & $12,000 & $5,400 & $2,640 \\ 3 & 15% & $12,000 & $1,800 & $840 \\ \hline 4 & 7% & $12,000 & $840 & $0 \\ \hline 5 & 0% & & $0 & $0 \\ \hline \end{tabular} Depreciation on old machine - Straight Line Cost Price Useful life Depreciable amount per year $7,500 15 $500 Payback Period Calculation Input Data (could be more or loss than those listed here) Cost of NEW equipment Annual dep of old equipment Salvage value new equipment OLD equipment's depreciable lfe left Cost of ald equipment Old equipment's depreciated years Depreciation of old equipment till date Annal cost savings Salvage value of old equipment Removal cost of old equipment Tax rate Removal cost of new equipment Net working capital requirement I INVESTMENT OUTLAY II OPERATING CASH FLOWS OVER THE PROJECT'S LIFE OPERATING CASH FLOWS OVER THE PROJECTS LIFE III TERMINAL YEAR CASH FLOWS \begin{tabular}{|c|c|} \hline 30 & 13 \\ \hline 31 & 14 \\ \hline 32 & 15 \\ \hline 33 & 16 \\ \hline 34 & 17 \\ \hline 5 & \end{tabular} 36 IV NET CASH FLOWS \begin{tabular}{l|l} 33 & \\ \hline 3 & RESULTS \end{tabular} 40NPV 41 IRR 42 MIRR 43 Payback period = DECISION BASED ON YOUR ANALYSIS: 1. The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. 2. The new pumping system is classified by the IRS as 5 -year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. 3. The existing pumping system was purchased at $45,000 eight years ago and has been 3. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. 4. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. 5. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used. 6. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price. P0, is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. 7. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future. Input Data (could be more or loss than those listed here) Weight=1-debtratio1.25=.75=75% Cost=Dividend(1+g/P+g)(21.04/26+.04)=.12100=12 WACC =.7512+.256(10.3)=10.05% WACC 10.05% 1. The equipment has a delivered cost of $112,000. An additional $4,000 is required to install and test the new system. 2. The new pumping system is classified by the IRS as 5-year property, although it has an 8-year estimated service life. For assets classified by the IRS as 5-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 6 years at the following rates: Year 1=20 percent, Year 2=32 percent, Year 3=19 percent, Year 4=12 percent, Year 5=11 percent, Year 6=6 percent. At the end of 8 years, the salvage value is expected to be around 5 percent of the original purchase price, so the best estimate of salvage value at the end of the equipment's service life is $5,600, with removal costs of $1,300. 3. The existing pumping system was purchased at $45,000 eight years ago and has been depreciated on a straight-line basis over its economic life of 10 years. If the existing system is removed from the well and crated for pickup, it can be sold for $3,500 before tax. It will cost $1,000 to remove the system and crate it. 4. At the time of replacement, the firm will need to increase its net working capital requirements by $4,200 to support inventories. 5. The new pumping system offers lower maintenance costs and frees personnel who would otherwise have to monitor the system. In addition, it reduces product wastage because of a higher cooling efficiency. In total, it is estimated that the yearly savings will amount to $28,000 if the new pumping system is used 6. FPC's assets are financed by debt and common equity and has a target debt ratio of 25 percent. Its debt carries an interest rate of 6 percent. The firm has paid $2.00 of dividend per share this year (D0) and expects a constant dividend growth rate of 4 percent per year in the coming years. The firm's current stock price. P0. is $26.00. The firm uses its overall weighted average cost of capital in evaluating average risk projects, and the replacement project is perceived to be of average risk. 7. The firm's federal-plus-state tax rate is 30 percent, and this rate is projected to remain fairly constant into the future FALCONVILLE PUMP COMPANY -CASH FLOW ESTIMATION WORKSHEET mput Data (could be more or less than those listed here) Input Data (could be more or less than those listed here)