Please help with Capital Budgeting Case study project

8 9 . Understand how to use E)(CEL S readsheet 10 a) uevelop proorrna ncorne DLaLerne11L using excel opreausnee 11 0) vornpu 'Nel rrojecL uasnwws, 'NE v, anu 12 c ueveup proolern-sor,.'lng anu cnucal Lilli1Klng 13 anu rnate long-Lerrn lnvesune[1L ueclsuns 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (Z4U,UUU) 46 (Z4U,UUU) 47 (Z4U,UUU) 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 zou uuu 76 77 78 79 81 82 83 84 85 86 87 88 89 90 91 92 93 94 ) Lite Period ot the Equipment 4 years ) New equipment cost ) Equipment snip & install ) Related start up cost ) Inventory increase ) Accounts Payable increase ) Equip. salvage value Detore tax jmng data In the cells colo STIMATING Initial outlay wasn Flow, CFO ) equipment cos ) smppng ana Install cos ) start up expenses 10tal basis cost Cl+Z+) ) Net vvonqng capital ($200,000) $25, ooo ZUU,UUU 35, UUU 5,UUU Z4U,UUU U.IY ) Sales tor first year s) Sales increase per year 10) operating cost (60% ot saes (as a percent ot sales in Year 1 11) Depreciation 14 Marginal Corporate Tax Rate ( 13) cost ot capital (Discount Rate only. Do not delete any row or column ZUU,UUU ll,wo zo,U00) use 3-yr MACR 1 1,000 Bikales - 'Otal Initial uuuay saes peraung preclauon axes Net Inco a oaCKuepreClat10 precauon Basl . egatl 1 UO,OU oy,4Z so, 544 zo, 104 yayoac OT years: Macrs year -avage val Pro ected CF UZ,UUS Z, 440) za'4 Pro ected CF UZ,UUS S' ,-ss) Z, 440) za'4 bass 4U,UU Macrs 70 otauperaung c;asnrl ) unange In net vv ) savage value (arter t 10tal rontaD111ty nae 44.4570 14.170 1.4170 Count 4 year ue recauon Ub,bU) ("5,544) avage val a Cummulative CF ZOU,UUU ZOU,UUU ZOU,UUU salvage val value 1 scountea yayoacx Year Year argna taxrate Cummulative CF SOZ,UUS SZ4,bb5 SUO UUU a PLEASE NESYUNU U UUESIIUNS UN ANUI'IEN IAD woua you accept tne project Dasea on NYV, INK woua you accept tne project Dasea on yayoacx rue IT project cut IS s years-t Impact OT ZUM ax cut Act on Net Income,vasn mows a capata buageung (Investment ) estimate NYV, ana yayoacK yenoa OT tne projec tax rate equals to z 170. vvoula you accept or reject tne project! AS a cru OT tne Tirm, wmcn OT tne aoove twocenarl woula you cnooseY vvny-,' 'low woua you to your veu wnat NPV means wnat are aavamages ana asaavantages OT using ony yayoacx metnoa ownat are aavamages ana asaavamages OT using NPV versus I tne amerence Detween naepenaem projects ana mutually proj vvnen you are comrontea witn Mutually exclusive yrojects ana nave COTIlCtS witn NYV ana results, wmcn criterion woula you use (NYV or ana wn First complete this spreadshee Then right-click on the tab Select 'Move or Copy' Check the 'Create a Copy' box in the corner of the pull-out menu CliCk "0K" a copy of the completed spreadsheet will be created. You can proceed to change the tax rate to 21% and adjust the peybaqhopriods Adjust salvage value after tax You should use the results to answer the questions 4 n 4 resentvalue Discount factor Discounted CF Count ears