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Tying machine for $50,000 per year, including all maintenance expetas. It is reneidering purchasing a machine Purchase de machine is is lying for $150,000. This
Tying machine for $50,000 per year, including all maintenance expetas. It is reneidering purchasing a machine Purchase de machine is is lying for $150,000. This machine will require $20,000 per year in engeing maisance exp Punara, mere advanced machine for $350,000. This machine will require $11,000 per year in ongoing mainan spand will lower being by $10,000 per year. Alm, $35,000 will be it spiset in sining the new persons of the machine Suppen the appropriate date is 1% per year and the machine is perhased today Maintenance and boling costs are paid at the end of year, the rental of the machine, Amme so that the machines will be depreciated via the right line med ever seven years and nt maker parchew the advanced Complete the plowing red regen date or pe cale cell reference is all you n deed, the earliest appearence of the date informally the Give D they T NPV Machi Pre Cure Machi NPV Pe Mad Ma O C FO (pb) PY ld 11%6 York Your 1 Year 1 Year Your 4 Your 5 Year 6 Year 7 Year 8 Year Year 10 SIGH $15,000 110,000 $15,000 Requirements 1 In cell E15, by using cell references, calculate the free cash flow for year 1 in case of renting the machine (1 pt.). 2 To calculate the free cash flows for years 2 through 10 in case of renting the machine, copy cell E15 and paste it onto cells F15:N15 (1 pt.). 3 In cell D16, by using cell references and the function NPV, calculate the net present value of renting the machine (1 pt.). 4 In cell E20, by using cell references, calculate the depreciation of the current machine for year 1 (1 pt.). 5 6 7 8 9 To calculate the depreciation of the current machine for years 2 through 7, copy cell E20 and paste it onto cells F20:K20 (1 pt.). In cell D22, by using a cell reference, calculate the free cash flow for year 0 in case of purchasing the current machine (1 pt.) In cell E22, by using cell references, calculate the free cash flow for year 1 in case of purchasing the current machine (1 pt.) To calculate the free cash flows for years 2 through 10 in case of purchasing the current machine, copy cell E22 and paste it conto cells F22:N22 (1 pt.). In cell D23, by using cell references and the function NPV, calculate the net present value of purchasing the current machine (1 pt.) 10 In cell E28, by using cell references, calculate the depreciation of the advanced machine for year 1 (1 pt.). 11 To calculate the depreciation of the advanced machine for years 2 through 7, copy cell E28 and paste it onto cells F28:K28 (1 pt.) 12 In cell D30, by using cell references, calculate the free cash flow for year 0 in case of purchasing the advanced machine (1 pt.) 13 To calculate the free cash flows for years 2 through 10 in case of purchasing the advanced machine, copy cell D30 and paste it onto cells E30:N30 (1 pt.). 14 In cell D31, by using cell references and the function NPV, calculate the net present value of purchasing the advanced machine (1 pt.). 15 In cell D33, type whether Beryl's Iced Tea should continue to rent, purchase the current machine, or purchase the advanced machine (1 pt.)
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