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Please help me with the attached question by excel , and please show me all the steps. I am willing to pay $35. ASAP.Thanks May

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Please help me with the attached question by excel , and please show me all the steps. I am willing to pay $35. ASAP.Thanks

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
May 29, 20x1 John Williams Wee-President of Finance Ray Cord Feasibility of New Automated System ____ __________ FN2: COMPUTER ILLUSTRATION 1-1 CGA-CANADA DATA TAB L E Corporate tax rate 32.00% Cost of capital 14.50% CCA rate - Class 10 30.00% CCA rate - Class 8 20.00% Computer system $1,200,000 Computer installation $300,000 Dispensing machines $500,000 Machine delivery and installation $200,000 Rental costs in Year 1 $40,000 Yearly increase in rental costs after Year 1 3.00% Salvage value - computer system $200,000 Salvage value - dispensing machines $150,000 lnitial additional working capital $100,000 Incremental working capital for years 1-4 $10,000 Operating revenues from airport shuttle services in Year 1 $1,400,000 Yearly increase in operating revenues after Year 1 $25,000 Operating costs of airport shuttle services in Year 1 $420,000 Yearly increase in operating costs after Year 1 5.00% Estimated life of ' 10 FN OMPUTER ILLUSTRATION CGAPCANADA r! Shuttle Service NET PRESENT VALUE ANALYSIS Airport shuttle service YEAR 1O Part lam) Cash flow from i all investment Computer system Dispensing machines Increases in working capital Initial Investment Part iaz) Cash flow from operations Revenues Ope rating costs Rental costs Operating prot Tax Alter-tax o ralin Aer tax cash aw+working capilal PV of operating cash aw Part (alga) _ Tax shields and terminal cash ow _ Tax shields - corn uter s tem _Tax shields - dis ensin machines _Salva e value -com ulers slern _Salva e value -dis ensin machines _ Recove of workin ca ilal Lost lax shields - computer system Lost lax shields - dispensing machines PV(T ax shields 4- terminal cash ow) Part (am) Decision Rule NPV PI ll IOOOOOOO WNMMMMM Mm GSA-CANADA DATA TABLE - Additi onal data for Insurance Services Incremental cost of computer system $300,000 Incremental shipping and installation expenses $200,000 Additional set-up costs $150,000 Incremental revenues in Year 1 $500,000 Annual increase in revenues after Year 1 5.00% Incremental operating costs in Year 1 $145,000 Annual increase in operating costs after Year 1 4.00% NET PRESENT VALUE ANALYSIS - Airport Shuttle and Insurance Services YEAR 3 4 5 6 10 Part b1} Cash aw from Initial Investment Computer system Dispensing machines Additional set-up costs Increases in working capital Initial Investment Cash aw from operations Revenues Incremental revenues Operating costs Rental costs Incremental costs Pre-tax prot (loss) Tax After-tax operating prot Aer tax mash flowmorking capital W of operating (25h flow Pan (21(2) _ Tax shields and terminal cash aw _ Tax shields - com uter s tem _ Tax shields - dis nsin machines _ Salva evalue -com uters tem _ Salva evalue -dis nsin machines _ Recove of workin (E ital Lost tax shields - computer system Lost tax shields - dispensing machines P'V Tax shields + terminal cash flow Decision rule NP'V Pl FN2: COMPUTER ILLUSTRATION 1-1: SOLUTION CGA-CANADA MEMO DATE: May 29. 20x1 TO: John Williams Vice-President of Finance FROM: Ray Cord SUBJECT: Feasibility of New Automated System EXHIBIT A. Key Financial lnfonnation on the New Automated System Item Airport shuttle service Airport shuttle and insurance services Initial investment PV(After-tax operating cash flows) PVfi'ax shields and terminal cash flows) NPV PI Cost of Capital FN2: COMPUTER ILLUSTRATION 1-1: Solution for Airport Shuttle Service CGAPCANADA NET PRESENT VALUE ANALYSIS - Airport shuttle service YEAR 0 1 3 4 5 6 10 Part (951) Cash flow from initial investment Computer sysle rn Dispensing machines Increases in working capital Initial Investment Part lam) Cash flow from operations Revenues Operating costs Rental costs Operating prot Tax Alter-tax operating prot Aer tax cash aw+wor1

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