You have just completed calciating the operating cash flow for a proposed project for Haarkat Enterprises (shown helow: Years 2 1 3 4 a) Use Goalelo delerinin this project's IRR (Line Visuunil tale that sets the sun of Line PV of the cash lows (years 1 - 4) equal to (bul oppusile in to the cash out low al Lime LTD IRA Step 1: enter a guess for the IRR in cel k... for cample you could enter 10%) 0 Profected Operating Cash Flows over the Project's Life Building -$11,900 Equipment $6,375 Increases in Nel Working Capital $6,015 Period 1 2 Step 2: Use the PV lurrikar PV function to calculate the PVul each castillow (L8:L11using the discourale in cell (5) Cash Flow $3.691 S4,338 54,441 $22,308 $ Units Sold Sales Price $3.15 4,646 $3.28 4.7HX $335 $3.21 4 Total Step 3: Surn the 1 PV (above) in cell L12) Step 4: use Goal Soak to determine the rate (KS) that sets the PV of the project cash flow equal to the outflow at timezoronqual to +26,7901 bj Using the Projected cash flows (B29:r29) and Excel's TVM functions (NPV and IRR functions), calculate the project's NPV and IRR. Assurne a WACC (Discount rale) ul 9.25% Sales Revenue Variable Costs Fixed Operating costs Depreciation building! Depreciation equipment) EBIT Taxes on Operating Income (40%) NOTAT I net operating profit after ta) Ard Pick learnivian Operating Cash Flow $29,878 $17,20 $7,565 $372 $1.273 $3,407 $1,261 $2,014 $1,647 $ $3.691 $30,800 $21,768 $17671 $17,901 $7565 57,565 $372 $322 $2,040 $1,211 $3211 $4,629 $1,984 $1452 $1.926 $2,778 $7.417 $1,58.1 $ $4,338 $4,361 $32,752 $18,361 $ 57,565 S322 $ $5,687 $2,275 53,112 $1,137 $4,549 WACE 4.259. NPV IRR HIND: the answer in cel K22 should match your answer above in ceilas found using Goal Sack Termine Yeer Cech Floww Return of net operating working capital Not salvaga valu Tolallerination cash flows $8,015 $4,744 $17,759 c) Now assume the project cash flows will be generated on the specific dates provided below. Assume a discount rate of 9.75%. Calculate the project's NPV and IRR. WACC 9.25% Don't' skip part d Projected Cash Flows -$26,290 $3,691 $4.338 $4,361 $22,303 The Projected Cash Flow calculations are complete... no need to modify this section Data Cash How 1/24/2019 $26,290 2/3/2020 $3,691 1/15/2021 $4,318 1/1/2022 $4,161 2/18/2023 $22,308 NPV TRR HINT: these metrics should NOT match the NV and Rawalues cabinet in north. Why NOT? You have just completed calciating the operating cash flow for a proposed project for Haarkat Enterprises (shown helow: Years 2 1 3 4 a) Use Goalelo delerinin this project's IRR (Line Visuunil tale that sets the sun of Line PV of the cash lows (years 1 - 4) equal to (bul oppusile in to the cash out low al Lime LTD IRA Step 1: enter a guess for the IRR in cel k... for cample you could enter 10%) 0 Profected Operating Cash Flows over the Project's Life Building -$11,900 Equipment $6,375 Increases in Nel Working Capital $6,015 Period 1 2 Step 2: Use the PV lurrikar PV function to calculate the PVul each castillow (L8:L11using the discourale in cell (5) Cash Flow $3.691 S4,338 54,441 $22,308 $ Units Sold Sales Price $3.15 4,646 $3.28 4.7HX $335 $3.21 4 Total Step 3: Surn the 1 PV (above) in cell L12) Step 4: use Goal Soak to determine the rate (KS) that sets the PV of the project cash flow equal to the outflow at timezoronqual to +26,7901 bj Using the Projected cash flows (B29:r29) and Excel's TVM functions (NPV and IRR functions), calculate the project's NPV and IRR. Assurne a WACC (Discount rale) ul 9.25% Sales Revenue Variable Costs Fixed Operating costs Depreciation building! Depreciation equipment) EBIT Taxes on Operating Income (40%) NOTAT I net operating profit after ta) Ard Pick learnivian Operating Cash Flow $29,878 $17,20 $7,565 $372 $1.273 $3,407 $1,261 $2,014 $1,647 $ $3.691 $30,800 $21,768 $17671 $17,901 $7565 57,565 $372 $322 $2,040 $1,211 $3211 $4,629 $1,984 $1452 $1.926 $2,778 $7.417 $1,58.1 $ $4,338 $4,361 $32,752 $18,361 $ 57,565 S322 $ $5,687 $2,275 53,112 $1,137 $4,549 WACE 4.259. NPV IRR HIND: the answer in cel K22 should match your answer above in ceilas found using Goal Sack Termine Yeer Cech Floww Return of net operating working capital Not salvaga valu Tolallerination cash flows $8,015 $4,744 $17,759 c) Now assume the project cash flows will be generated on the specific dates provided below. Assume a discount rate of 9.75%. Calculate the project's NPV and IRR. WACC 9.25% Don't' skip part d Projected Cash Flows -$26,290 $3,691 $4.338 $4,361 $22,303 The Projected Cash Flow calculations are complete... no need to modify this section Data Cash How 1/24/2019 $26,290 2/3/2020 $3,691 1/15/2021 $4,318 1/1/2022 $4,161 2/18/2023 $22,308 NPV TRR HINT: these metrics should NOT match the NV and Rawalues cabinet in north. Why NOT
