Use excel to compute Cash flows, NPV, IRR and Pay Back period

Use Excel Spread Sheet to compute Cash flows, NPV, IRR and Pay Back Period $200,000 5% $(120,000) -60% $(60,000) 35% 10% 1) Life Period of the Equipment+ 4 years 2) New equipment cost 8) Sales for first year (1) 9) Sales increase per year 10) Operating cost: $(200,000) 3) Equipment ship & install cost $(35,000) $(5,000) $25,000 $5,000 ) Equip. salvage value after tax $15,000 (as a percent of sales in Year 1) 11) Depreciation (Straight Line)YR 12) Tax rate 13) WACC Related start up cost 5) Inventory increase ) Accounts Payable increase ESTIMATING CASH FLOW and MAKING CAPITAL BUDGETING DECISION ear Investments 1) Equipment cost 2) Shipping and Install cost 3) Start up expenses Total Basis Cost (1+2+3) 4)Net Working Capital Total Initial Outla