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Required information Excel Analytics 14-1 (Algo) Internal Rate of Return [LO14-2, LO14-3] Eisner Company has an opportunity to manufacture and sell a new product
Required information Excel Analytics 14-1 (Algo) Internal Rate of Return [LO14-2, LO14-3] Eisner Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs and revenues for the new product: Cost of new equipment Initial working capital required Overhaul of the equipment after three years Salvage value of the equipment after five years Annual revenues and costs: Sales Variable expenses Fixed out-of-pocket operating costs $850,000 $500,000 $199,000 $420,000 $ 95,000 $ 50,000 $ 30,000 When the project concludes in five years the working capital will be released for investment elsewhere in the company. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on Goal Seek in Excel.
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