Answered step by step
Verified Expert Solution
Question
1 Approved Answer
With the information above fill out the excel sheet below with work: MACRS Schedule 3-year 5- year begin{tabular}{rrcccccc} Year 1 & Year 2 & Year
With the information above fill out the excel sheet below with work:
MACRS Schedule 3-year 5- year \begin{tabular}{rrcccccc} Year 1 & Year 2 & Year 3 & Year 4 & Year 5 & Year 6 & Year 7 & Year 8 \\ \hline 33.33% & 44.45% & 14.81% & 7.41% & & & \\ 20.00% & 32.00% & 19.20% & 11.52% & 11.52% & 5.76% & \\ 14.29% & 24.49% & 17.49% & 12.49% & 8.93% & 8.92% & 8.93% & 4.46% \end{tabular} Pro Forma Income Statements Year \begin{tabular}{lllll} 1 & 2 & 4 & 5 \\ \hline \end{tabular} Revenues Variable costs Fixed costs Depreciation EBIT Taxes(21%) Net income OCF Net Working Capital Year 0 01 2 3 Initial NWC Ending NWC NWC cash flow Salvage Value Market value of salvage Book value of salvage Taxes on sale: Aftertax salvage value: Project Cash Flows Year OCF Change in NWC Capital spending Total cash flow Cumulative cash flow Payback calculation Discounted cash flows Cumulative discounted cash flow Discounted payback calculation MACRS Schedule 3-year 5- year \begin{tabular}{rrcccccc} Year 1 & Year 2 & Year 3 & Year 4 & Year 5 & Year 6 & Year 7 & Year 8 \\ \hline 33.33% & 44.45% & 14.81% & 7.41% & & & \\ 20.00% & 32.00% & 19.20% & 11.52% & 11.52% & 5.76% & \\ 14.29% & 24.49% & 17.49% & 12.49% & 8.93% & 8.92% & 8.93% & 4.46% \end{tabular} Pro Forma Income Statements Year \begin{tabular}{lllll} 1 & 2 & 4 & 5 \\ \hline \end{tabular} Revenues Variable costs Fixed costs Depreciation EBIT Taxes(21%) Net income OCF Net Working Capital Year 0 01 2 3 Initial NWC Ending NWC NWC cash flow Salvage Value Market value of salvage Book value of salvage Taxes on sale: Aftertax salvage value: Project Cash Flows Year OCF Change in NWC Capital spending Total cash flow Cumulative cash flow Payback calculation Discounted cash flows Cumulative discounted cash flow Discounted payback calculationStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started