Use Excel to evaluate the following capital budgeting project for the best, base, and worst cases. You will calculate the following values for each Net present value Internal rate of return Profitability index Average Accounting Return Payback Discounted payback The cash flows change every year because of the assumptions below Note: You must do your calculations in Excel. Do not do them with a calculator and type them in, except for PAYBACK and DISCOUNTED PAYBACK. Example: For the base case, unit sales is 110,000 in year 1. The assumptions state that unit sales will decline in the second year by 1,000. Assuming that the year 1 unit sales is in cel M246 (note: it isn't really in cell M246), year 2 unit sales would be in N246 and the formula in that cell would be M246-1,000 Here ere is information about the project Initial Feed Asset investment $11,000,000 Net Working Cap Requirements $800,000, returned at the end of the project Time frame years Marginal tax rate 213 Required rate of return 10% Syear straight line depreciation with assumption of tera salvage value For negative net pre-tax incomes, you must include negative taxes, le if the project loses money, it will reduce the company's acable income, thus lowering its tax bill 10 points will be subtracted if you do not follow the following requirements: PUT ALL THREE CASES ON ONE EXCEL SPREADSHEET, DO NOT USE TABS TO HAVE THREE SEPARATE SHEETS ALL COLUMNS SHOULD AT WITHIN THE WIDTH OF ONE PRINTED PAGE. THEY SHOULD NOT BLEED ONTO A SECOND PAGE. Woost est Unit Sales year 1- 110,000 98,000 122.000 Change in un sales per year -1.600 -2,000 $220 $130 $250 Change in price per years -510 50 Variable County S155 $1.5 Canes in variate counter 51 SO 540.000 540,000 540.000 OD 5100 5500 5100 310.00 $100,000 $140.000 5145 O Focus MacBook Air Use Excel to evaluate the following capital budgeting project for the best, base, and worst cases. You will calculate the following values for each Net present value Internal rate of return Profitability index Average Accounting Return Payback Discounted payback The cash flows change every year because of the assumptions below Note: You must do your calculations in Excel. Do not do them with a calculator and type them in, except for PAYBACK and DISCOUNTED PAYBACK. Example: For the base case, unit sales is 110,000 in year 1. The assumptions state that unit sales will decline in the second year by 1,000. Assuming that the year 1 unit sales is in cel M246 (note: it isn't really in cell M246), year 2 unit sales would be in N246 and the formula in that cell would be M246-1,000 Here ere is information about the project Initial Feed Asset investment $11,000,000 Net Working Cap Requirements $800,000, returned at the end of the project Time frame years Marginal tax rate 213 Required rate of return 10% Syear straight line depreciation with assumption of tera salvage value For negative net pre-tax incomes, you must include negative taxes, le if the project loses money, it will reduce the company's acable income, thus lowering its tax bill 10 points will be subtracted if you do not follow the following requirements: PUT ALL THREE CASES ON ONE EXCEL SPREADSHEET, DO NOT USE TABS TO HAVE THREE SEPARATE SHEETS ALL COLUMNS SHOULD AT WITHIN THE WIDTH OF ONE PRINTED PAGE. THEY SHOULD NOT BLEED ONTO A SECOND PAGE. Woost est Unit Sales year 1- 110,000 98,000 122.000 Change in un sales per year -1.600 -2,000 $220 $130 $250 Change in price per years -510 50 Variable County S155 $1.5 Canes in variate counter 51 SO 540.000 540,000 540.000 OD 5100 5500 5100 310.00 $100,000 $140.000 5145 O Focus MacBook Air
