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Please help me answer questions 3,4 & 5. 2. What is the correct value for the after- tax salvage cash flow in B4? a-2,800 b)
Please help me answer questions 3,4 & 5.
2. What is the correct value for the after- tax salvage cash flow in B4? a-2,800 b) 47,800 c) 27,000 d) 42,200 e) 45,000 1 Salvage Value 2 Book Value 3 Tax Rate 4 After-Tax Salvage Value 45,000 52,000 40% 40%(81-82) = 2850s 3. What is the value of cell B7? a) 1.80 b) 2.17 c) 2.32 d) 2.50 e) 2.73 Year Cash Flows (60,000) 20,000 25,000 30,000 6 WACC 12% 7 Payback Period =FAME_Payback(B2B5) 4. What is the value of cell B7? a) Payback > Life (Can't recover cost) b) 1.78 c) 2.09 d) 2.25 e) 2.50 Year Cash Flows (60,000) 20.000 25,000 30.000 WACC 12% 7 Disc Payback Period =FAME_PaybackB2 B5,B6) Year 5. Which is the right formula for B7? a) =NPV(B6,B2:B5) b) ENPV(B6,B3:B5)-B2 c) ENPV(B6,B3:B5)+B2 d) ENPV(B6,B2:B5)+B2 e) =NPV(B6,B2:B5)-B2 3 1 Cash Flows (60,000) 20,000 25,000 30,000 A 2 3 12% 6 WACC 7 NPV Step by Step Solution
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