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Please show all work in excel! You are considering the following investment: G H 4 5 6 7 3.100 3.000 2,900 2.500 B D E
Please show all work in excel!
You are considering the following investment: G H 4 5 6 7 3.100 3.000 2,900 2.500 B D E 1 DEPRECIATION SCHEDULE 2 3 Year 0 1 2. 3 4 Earnings before depreciation and taxes 3,200 3,450 4.200 5 Depreciation 6 Earnings before taxes 7 Tax (34%) 8 Net operating profit after tax 9 Capital investment (no salvage value) -12,460 10 Add back depreciation 11 Free cash flow 12 13 Discount rate 11% 14 NPV 0 a. Assuming that the investment can be depreciated using 7-year straight-line depreciation with no salvage value, calculate the project NPV. b. What will be the company's gain in present value if it uses a 7-year modified accelerated depreciation (MACRS) schedule, given below: A 17 Year 18 MACRS depreciation BC D E F G H J 0 1 2 3 4 5 6 7 8 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4,45% Step by Step Solution
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