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Please show EXCEL FORMULA. Thank you --- x B== Planning for Capital Investments - Excel F9 A B C D E 1 Laurman, Inc. is
Please show EXCEL FORMULA. Thank you
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x B== Planning for Capital Investments - Excel F9 A B C D E 1 Laurman, Inc. is considering the following project: \begin{tabular}{ll|l|r} \hline 2 & Required investment in equipment & $ & 2,205,000 \\ \hline 3 & Project life & & 7 \\ \hline 4 & Salvage value & & 225,000 \end{tabular} 6 The project would provide net operating income each year as follows: 1. Compute the annual net cash inflow from the project. (Note: depreciation is the only noncash expense on the income statement) 2. Complete the table to compute the net present value of the investment. \begin{tabular}{l|c|c} \multirow{2}{*}{ Now } & Year(s) \\ \cline { 2 - 3 } & 17 & \\ \hline \end{tabular} F9 \begin{tabular}{l|l|c|c} \hline \multicolumn{1}{|c|}{ A } & B & C & D \\ \hline 22 & & & Year(s) \\ \hline 23 & & 17 & 7 \\ \hline 24 & Initial investment & & \\ \hline 25 & Annual cost savings & & \\ \hline 26 & Salvage value of the new machine & & \\ \cline { 3 - 4 } 27 & Total cash flows & & \\ \hline 28 & Discount factor & & \\ \hline \end{tabular} 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV function to compute the present value of the future cash flows 33 Deduct the cost of the investment 34 Net present value 3. Use Excel's RATE function to compute the project's internal rate of return 4. Compute the project's payback period. years 5. Compute the project's unadjusted rate of returnStep by Step Solution
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