Question
PLEASE PLEASE ONLY SOLVE ON EXCEL ONLY ON EXCEL IS WHAT I NEED HELP WITH ANYTHING ELSE I WILL MARK WRONG AND INCORRECT Your company
PLEASE PLEASE ONLY SOLVE ON EXCEL ONLY ON EXCEL IS WHAT I NEED HELP WITH ANYTHING ELSE I WILL MARK WRONG AND INCORRECT
Your company will buy a heavy general-purpose truck. The purchase price is $90,000. Shipping and training will cost $10,000 to make the truck serviceable. Salvage=$0.
1) if this truck is to be used for a project with a life of 4 years, and the annual profits estimated to be gained by the use of this truck is $35K, and its Market Value at the end of the project life is $50K, use Straight Line Depreciation to calculate its After Tax Cash Flows (ATCF). What is the NPV, IRR AND PI of this project based on this after tax analysis? Is this project feasible or not? Explain clearly.
2)Continuing with the question and using the additional info given in Question 5, use the MACRS method to perform after tax analysis. What is the NPV? What is the NPV, IRR AND PI of this project based on this after tax analysis? Is this project feasible or not? Explain clearly.
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