Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide excel formula, thank you! Laurman, Inc, is considering a new project and has provided the details of the project. The Controller has asked

Please provide excel formula, thank you! image text in transcribed
image text in transcribed
image text in transcribed
Laurman, Inc, is considering a new project and has provided the details of the project. The Controller has asked you to compute various capital budgeting methods to help aid in the decision to pursue the investment. Use the information included in the Fxcel Simulation and the Excel functions described below to complete the task, - Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "CA" Was entered, the formula would output the result from cell C4, or 225,000,000 in this example. - Basle Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys, + (plus sign to add). - (minus sign to subtract). " (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a biank cell "=D13+D14" was entered, the formula would add the values from those cells and output the result, or 1.150,000 in this example, If using the other math symbols the result would output an appropriate answer for its function. - SUM function: Allows you to refer to muliple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell "=SUM(D7,D8,D9)" was entered, the formula. would output the result of adding those three separate cells, or 5,500,000 in this example. Similarly, If in a blank cell "=SUM/D7:D9)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 5,500,000 in this cxample. - RATE function: Allows you to return the interest rate per period. The syntax of the RATE function is "=RATE(nper,pmt,pvifv?(ifypel, (guess)" and results in the percentage interest rate value for the related inputs. The npor argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the lifo of the investment and this argument must be included if the [f/ argument is not included. The pV argument is the present value, or the total amount that series of future payments is worth now. The [f] argument is the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The [type] argument is a logical value of 0 or 1 , which indicates when the payments are due where 1 is the payment at the beginning of the period and 0 , is the payment at the end of the period. Both the (f)/ and (fype) values are optional arguments to have the formula work, which is why they are surrounded by brackets in the syntax, however. these values would not be entered with brackets in the actual function. The (guess) argument is also optional and is your guess for what the rate will be, however, If omitted the system assumes a guess of 10 percent. Eor the purposes of this. Excel Simulation. olease. Include both the (omt) and (frjarguments. but leave out the ffyedand/ovess)arguments from the function. Also. the pyargument should be entered as negatlve value. - PV Function: Allows you to perform the mathematical present value calculation of a value. The syntax of the PV function is "=PV(rate, nperpmi, (N).(type)" and results in the total amount that a series of future payments is worth now also known as the present value. The rate argument is the interest rate per period. The nper argument is the total number of payment periods. The pint argument is the payment made each period that does not change over the life of the investment and this argument must be included if the [N] argument is not included. The [f] argument is the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The [type] argument is a logical value of 0 or 1 , which indicates when the payments are due where 1 is the payment at the beginning of the period and 0 , is the payment at the end of the period. Both the [ifl and [type]values are optional arguments to have the formula work, which is why they are surrounded by brackets in the syntax, however. these values would not be entered with brackets in the actual function. For the purposes of this Excel Simulation. olease include both the fometand Ifv] arguments, but leave out the ffyeelargument from the function. Also, the entire. PV function should have a minus sign included before the formula 50 the calculation will result in a positive value (l.e. "= PV(A1.A2.A3.A4)" (i) Sared 6 The project would provide net operating income each year as follows: 2. Complete the table to compute the net present value of the investment. 212223Year(s)Now17 ti Stred

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: E.J. Mishan, Euston Quah

6th Edition

1138492752, 978-1138492752

More Books

Students also viewed these Accounting questions

Question

What laws were probably being violated?

Answered: 1 week ago