Please show how to use the correct formulas and math in excel.

Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 4Xfx J18 B D E F G H 1 J K 1 FIN 3320 Assignment 2 problems 2 3 4 Problem 1 5 6 7 8 The Livin' Made EZ corporation has a flexible Investment situation and is considering a new three-year expansion project that will require an initial fixed asset purchase of $20.5 million. The fixed assets will be depreciated straight-line to zero over its three-year tax life. The firm expects to be able to sell the fixed assets at the end of the project for $15,350,500. 9 10 11 12 The project is estimated to generate following revenues during those three years: $15,640,000 in year one, $17,931,128 in year two, and $19,466,667 in year three. The firm expects that their costs will be equal to 55% of the projects same year revenues. They expect that project net working capital (in the form of inventory required) will be equal to 8.75% of the next year's revenue. The firms tax-rate is 21%. What are the project's cash flows from assets for years 0-3? What is the IRR on this project? 13 14 15 16 Use available Excel template and complete using "best practices" (use formulas - no hardcoding In model). This means that every cell must be calculated inside of excell Do not use your calculator and then just type in numbers. If you need help use the excel help function or youtubel 17 18 19 20 21 22 23 24 Revenue t=1 Revenuet-2 Revenue t=3 Investment Depr. years Final book value Fixed Asset Sale value NWC total Costs % Tax rate % You may use positive or negative numbers in this section below in any consistent manner. Please make sure your Excel formulas are consistent and that your cash flow numbers are correct. SL 25 26 27 28 29 30 31 32 Year 0 Year 1 Year 2 Year 3 33 Revenue 34 Expenses 35 Depreciation 36 EBIT $ $ $ $ $ $ $ 37 Taxes 38 Net Income (NI) 39 OCF Variations of positive and negative numbe are acceptable as long as formulas are consistent and cash flows total correctly. 40 41 NWC total 42 Change in NWC 43 Net Capital Spending 44 CFFA Highlighted cells are most important. 45 46 Project IRR 47 48 49 50 Problem 2 Use Excel formulas for a) and c) below 51 52 Year 0 Year 1 Year 2 75,160S Year 3 92,325 $ (268,000) $ 150,7939 53 Total Cash Flow 54 Discount rate 12.50% 55 56 a) NPV 57 58 b) Accept/Reject 59 60 c) IRR 61 62 63 64 65 FIN 3320 Questions + Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 4Xfx J18 B D E F G H 1 J K 1 FIN 3320 Assignment 2 problems 2 3 4 Problem 1 5 6 7 8 The Livin' Made EZ corporation has a flexible Investment situation and is considering a new three-year expansion project that will require an initial fixed asset purchase of $20.5 million. The fixed assets will be depreciated straight-line to zero over its three-year tax life. The firm expects to be able to sell the fixed assets at the end of the project for $15,350,500. 9 10 11 12 The project is estimated to generate following revenues during those three years: $15,640,000 in year one, $17,931,128 in year two, and $19,466,667 in year three. The firm expects that their costs will be equal to 55% of the projects same year revenues. They expect that project net working capital (in the form of inventory required) will be equal to 8.75% of the next year's revenue. The firms tax-rate is 21%. What are the project's cash flows from assets for years 0-3? What is the IRR on this project? 13 14 15 16 Use available Excel template and complete using "best practices" (use formulas - no hardcoding In model). This means that every cell must be calculated inside of excell Do not use your calculator and then just type in numbers. If you need help use the excel help function or youtubel 17 18 19 20 21 22 23 24 Revenue t=1 Revenuet-2 Revenue t=3 Investment Depr. years Final book value Fixed Asset Sale value NWC total Costs % Tax rate % You may use positive or negative numbers in this section below in any consistent manner. Please make sure your Excel formulas are consistent and that your cash flow numbers are correct. SL 25 26 27 28 29 30 31 32 Year 0 Year 1 Year 2 Year 3 33 Revenue 34 Expenses 35 Depreciation 36 EBIT $ $ $ $ $ $ $ 37 Taxes 38 Net Income (NI) 39 OCF Variations of positive and negative numbe are acceptable as long as formulas are consistent and cash flows total correctly. 40 41 NWC total 42 Change in NWC 43 Net Capital Spending 44 CFFA Highlighted cells are most important. 45 46 Project IRR 47 48 49 50 Problem 2 Use Excel formulas for a) and c) below 51 52 Year 0 Year 1 Year 2 75,160S Year 3 92,325 $ (268,000) $ 150,7939 53 Total Cash Flow 54 Discount rate 12.50% 55 56 a) NPV 57 58 b) Accept/Reject 59 60 c) IRR 61 62 63 64 65 FIN 3320 Questions +