Question
PLEASE PROVIDE ALL EXCEL FORMULAS Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The
PLEASE PROVIDE ALL EXCEL FORMULAS
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent and the required return is 12 percent. Suppose the project requires an initial investment in net working capital of $250,000, and the foxed asset will have a market value of $180,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? What is the NPV?
have a market value of $180,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1 ? Year 2 ? Year 3 ? What is the NPV? Input area: \begin{tabular}{|lr|} \hline Asset investment & $2,180,000 \\ Estimated annual sales & $1,645,000 \\ Costs & $610,000 \\ Tax rate & 21% \\ Required return & 12% \\ Initial investment in NWC & $250,000 \\ Fixed asset value at end & $180,000 \\ MACRS percentages & \\ Year 1 & 0.3333 \\ Year 2 & 0.4445 \\ Year 3 & 0.1481 \\ \hline \end{tabular} (Use cells A6 to B16 from the given information to complete this question. You must use the built-in Excel function to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.) Output areaStep by Step Solution
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