Solve in Excel and show Formulas. Please!!!
Capital budgeting practice (CAPEX) A company is introducing a product that can sell at: 10 DOP per unit, it is estimated that the volume of sales to be made is 200,000 units the first year and for the following years an increase of 5% compared to the sales of the previous year, this during the useful life of the project, which is 4 years. The company has two investment alternatives. 1st. Project A, and 2nd. Project B. The cost distribution is as follows: Variable costs from A: 400,000 to B: 200,000. The fixed costs for A: are 725,000 while for B: they are 850,000. Initial investment in project "A" is: 800,000 while for "B" it is: 1,400,000. Additional info: The investment will have a capital cost of 15% and the ISR is 27%. the depreciation method used is the straight line according to the categories in force in the DGII. It is required: a) Develop forecasted income statement with the data provided Then determine: b) Recovery Period or Pay Back c) Productivity Index d) Net Present Value (NPV) e) Develop capital investment budget (CAPEX) and select the most feasible project according to the indicators Summary Initial Investment Time (in years) N Cost of capital Taxes A 800,000.00 4.00 15% 40% B 1,400,000.00 4.00 15% 40% Rubric: The correct forecast of the income statement will be evaluated, which must have exact correct values. The correct formulation of each of the indicators will be evaluated (show formula and then develop). Each acapite (a-e) have a value of 2 points separately indistinctly. (10 points in total). The professionalism of the layout of the spreadsheet used to show the results will be evaluated. When finished, the excel file must be uploaded to the virtual platform, two attemps to turn in, however, only the last one will score. Capital budgeting practice (CAPEX) A company is introducing a product that can sell at: 10 DOP per unit, it is estimated that the volume of sales to be made is 200,000 units the first year and for the following years an increase of 5% compared to the sales of the previous year, this during the useful life of the project, which is 4 years. The company has two investment alternatives. 1st. Project A, and 2nd. Project B. The cost distribution is as follows: Variable costs from A: 400,000 to B: 200,000. The fixed costs for A: are 725,000 while for B: they are 850,000. Initial investment in project "A" is: 800,000 while for "B" it is: 1,400,000. Additional info: The investment will have a capital cost of 15% and the ISR is 27%. the depreciation method used is the straight line according to the categories in force in the DGII. It is required: a) Develop forecasted income statement with the data provided Then determine: b) Recovery Period or Pay Back c) Productivity Index d) Net Present Value (NPV) e) Develop capital investment budget (CAPEX) and select the most feasible project according to the indicators Summary Initial Investment Time (in years) N Cost of capital Taxes A 800,000.00 4.00 15% 40% B 1,400,000.00 4.00 15% 40% Rubric: The correct forecast of the income statement will be evaluated, which must have exact correct values. The correct formulation of each of the indicators will be evaluated (show formula and then develop). Each acapite (a-e) have a value of 2 points separately indistinctly. (10 points in total). The professionalism of the layout of the spreadsheet used to show the results will be evaluated. When finished, the excel file must be uploaded to the virtual platform, two attemps to turn in, however, only the last one will score
