X 19- Calibri 2 A KA A Paste BIU. Apment Number Condo Fomatas Cet Foming Table Styles Casting God font A1 Laurman, Inc. is considering the follow propect: 10 points 3 D $ too 1 Laurman, Inc. is considering the follow project: 2 Required investment in equipment 3 Projecte Salvage value 2,205,000 7 225.000 5 Den $ 2.750,000 1.600.000 1.150.000 5 520,000 The project would provide net operating income each year as follows: 7 Sales Variable expenses 2 Contribution margin 10 Fored expenses 11 Salanes, rent and other thed out of pocket costs 5 12 Depreciation Totalted expenses 14 Net operating income 15 18 16 Company discount rate 17 Thantaran fintha 350.000 370.000 200.000 De 21 Nand o contexternal browser bunch JAN 22 mm 2mgh Ch 16 HW Save 2 Sed 17 11. Compute the annual net cash inflow from the project. 19 (Note: depreciation is the only oncash expense on the income statement 20 2. Complete the table to compute the net present value of the investment 1 10 points Duters 22 wars 17 34 initial investment 25 Annual cost savings 26 Salvage value of the new machine ZT Total cash flows 28 Discount factor 1.000 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV lunction to compute the present of the future cash flow 33 Deduct the cost of the investment 14 Net present value 35 06 3.-Lise Excel's RATE function to compute the projects internal rate of return 37 35 4. Compute the project's payback period 29 Sheet1 READY browser and the Ch 16 FW Sere 2 1.000 10 Doints 23 Now 24 Initial investment 25 Annual cost saving 26 Salvage value of the new machine 27 Total cash flows 28 Discount factor 79 Present value of the cash flows 30 Net present value 31 12 Use Excel's PV function to compute the present value of the future Cath flows 33 Deduct the cost of the investment 34 Net present value 35 36 3. Use Excel's RATE function to compute the projects internal rate of return 57 384. Compute the project's payback period 19 40 5. Compute the project's unadused rate of return Prir years 31 43 44 Sheet1 100 READY X 19- Calibri 2 A KA A Paste BIU. Apment Number Condo Fomatas Cet Foming Table Styles Casting God font A1 Laurman, Inc. is considering the follow propect: 10 points 3 D $ too 1 Laurman, Inc. is considering the follow project: 2 Required investment in equipment 3 Projecte Salvage value 2,205,000 7 225.000 5 Den $ 2.750,000 1.600.000 1.150.000 5 520,000 The project would provide net operating income each year as follows: 7 Sales Variable expenses 2 Contribution margin 10 Fored expenses 11 Salanes, rent and other thed out of pocket costs 5 12 Depreciation Totalted expenses 14 Net operating income 15 18 16 Company discount rate 17 Thantaran fintha 350.000 370.000 200.000 De 21 Nand o contexternal browser bunch JAN 22 mm 2mgh Ch 16 HW Save 2 Sed 17 11. Compute the annual net cash inflow from the project. 19 (Note: depreciation is the only oncash expense on the income statement 20 2. Complete the table to compute the net present value of the investment 1 10 points Duters 22 wars 17 34 initial investment 25 Annual cost savings 26 Salvage value of the new machine ZT Total cash flows 28 Discount factor 1.000 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV lunction to compute the present of the future cash flow 33 Deduct the cost of the investment 14 Net present value 35 06 3.-Lise Excel's RATE function to compute the projects internal rate of return 37 35 4. Compute the project's payback period 29 Sheet1 READY browser and the Ch 16 FW Sere 2 1.000 10 Doints 23 Now 24 Initial investment 25 Annual cost saving 26 Salvage value of the new machine 27 Total cash flows 28 Discount factor 79 Present value of the cash flows 30 Net present value 31 12 Use Excel's PV function to compute the present value of the future Cath flows 33 Deduct the cost of the investment 34 Net present value 35 36 3. Use Excel's RATE function to compute the projects internal rate of return 57 384. Compute the project's payback period 19 40 5. Compute the project's unadused rate of return Prir years 31 43 44 Sheet1 100 READY