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Please help learning to do in excel 6. The Fun Foods Corporation must decide on what new product lines to introduce next year. After-tax cash
Please help learning to do in excel
6. The Fun Foods Corporation must decide on what new product lines to introduce next year. After-tax cash flows are listed below along with initial investments. The firm's cost of capital CHAPTER 2 Capital-Budgeting Principles and Techniques is 12% and its target accounting rate of return is 20%. Assume straight-line depreciation and an asset life of five years. The corporate tax rate is 35%. All projects are independent. is 12% and its target accounting rate of return is 20%. Assume straight-line depreciation and an asset life of five years. The corporate tax rate is 35%. All projects are independent. a. Calculate the accounting rate of return on the project. Which projects are acceptable according to this criterion? (Note: Assume net income is equal to after-tax cash flow less depreciation.) b. Calculate the payback period. All projects with a payback of fewer than four years are acceptable. Which are acceptable according to this criterion? c. Calculate the projects' NPV. Which are acceptable according to this criterion? d. Calculate the projects' IRRs. Which are acceptable according to this criterion? e. Which projects should be chosen? 1. The Fut Food chris is trying to introksec an sew Hot and Spicy lece of harmurran Oae 6. Which gien (T) or t) weid fant Food choont Why? 6. The Fun Foods Corporation must decide on what new product lines to introduce next year. After-tax cash flows are listed below along with initial investments. The firm's cost of capital CHAPTER 2 Capital-Budgeting Principles and Techniques is 12% and its target accounting rate of return is 20%. Assume straight-line depreciation and an asset life of five years. The corporate tax rate is 35%. All projects are independent. is 12% and its target accounting rate of return is 20%. Assume straight-line depreciation and an asset life of five years. The corporate tax rate is 35%. All projects are independent. a. Calculate the accounting rate of return on the project. Which projects are acceptable according to this criterion? (Note: Assume net income is equal to after-tax cash flow less depreciation.) b. Calculate the payback period. All projects with a payback of fewer than four years are acceptable. Which are acceptable according to this criterion? c. Calculate the projects' NPV. Which are acceptable according to this criterion? d. Calculate the projects' IRRs. Which are acceptable according to this criterion? e. Which projects should be chosen? 1. The Fut Food chris is trying to introksec an sew Hot and Spicy lece of harmurran Oae 6. Which gien (T) or t) weid fant Food choont Why
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