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Please provide answers in formulas to be input into excel :) 1. Compute the annual net cash inflow from the project. 2. Complete the table
Please provide answers in formulas to be input into excel :)
1. Compute the annual net cash inflow from the project. 2. Complete the table to compute the net present value of the investment. \begin{tabular}{|l|l|l|} \hline Initial investment \\ Annual cost savings \\ Salvage value of the new machine \\ \hline Total cash flows \\ \hline Discount factor \\ \hline Present value of the cash flows \\ \hline Net present value \\ \hline Use Excel's PV function to compute the present value of the future cash flows \\ \hline Deduct the cost of the investment \\ \hline Net present value \\ \hline 3. Use Excel's RATE function to compute the project's internal rate of return \\ \hline 4. Compute the project's payback period. \\ \hline \end{tabular} 46 5. Compute the project's simple rate of return. \begin{tabular}{|c|c|c|c|} \hline & A & B & C \\ \hline \multicolumn{4}{|l|}{1} \\ \hline 2 & Laurman, Incorporated is considering the following project: & & \\ \hline \multicolumn{4}{|l|}{3} \\ \hline 4 & Required investment in equipment & $2,205,000 & \\ \hline 5 & Project life & 7 & \\ \hline 6 & Salvage value & 225,000 & \\ \hline \multicolumn{4}{|l|}{7} \\ \hline 8 & The project would provide net operating income each year as follows: & & \\ \hline 9 & Sales & & $2,750,000 \\ \hline 10 & Variable expenses & & 1,600,000 \\ \hline 11 & Contribution margin & & $1,150,000 \\ \hline 12 & Fixed expenses: & & \\ \hline 13 & Salaries, rent and other fixed out-of pocket costs & $520,000 & \\ \hline 14 & Depreciation & 350,000 & \\ \hline 15 & Total fixed expenses & & 870,000 \\ \hline 16 & Net operating income & & $280,000 \\ \hline \multicolumn{4}{|l|}{17} \\ \hline 18 & Company discount rate & 18% & \\ \hline 19 & & & \\ \hline \end{tabular}Step by Step Solution
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