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please show the excel formulas used for each column. Consider an investment that has a project life of 12 years and requires an investment of
please show the excel formulas used for each column.
Consider an investment that has a project life of 12 years and requires an investment of $1,250,000 at time zero for machinery and equipment to be depreciated over 10 years with the straight-line depreciation method with a half year convention (starting in year 1 and continuing to year 11). Annual revenue is estimated to be $300.000 and annual operating costs of $95.000. $250,000 is needed for working capital at time zero. The salvage value of the machinery and equipment will be zero while an environmental remediation cost of $80,000 will be required to be paid at the end of year 12 as an additional operating cost. The minimum After Tax Cash Flow ROR is 12.5% and the effective income tax rate is 20%. Calculate the After Tax Cash Flow, NPV and ROR of the projectStep by Step Solution
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