Week 8 Excel Spreadsheet to be used with the Practice Set:YearsAcquisition stage cash flow:Initial OutlayOperating stage cash flow:SalesFixed CostVariable CostDepreciation expenseTaxable incomeTaxes0(800,000)12345678After tax incomeAdd back depreciationOperating cash flows600,000 600,000 600,000 600,000(220,000) (220,000) (220,000) (220,000)(240,000) (240,000) (240,000) (240,000)(68,000) (68,000) (68,000) (68,000)72,000 72,000 72,000 72,000(20,160) (20,160) (20,160) (20,160)51,840 51,840 51,84068,000 68,000 68,000119,840 119,840 119,84051,84068,000119,840600,000 600,000 600,000 600,000(220,000) (220,000) (220,000) (220,000)(240,000) (240,000) (240,000) (240,000)(68,000) (68,000) (68,000) (68,000)72,000 72,000 72,000 72,000(20,160) (20,160) (20,160) (20,160)51,840 51,840 51,840 51,84068,000 68,000 68,000 68,000119,840 119,840 119,840 119,840Disposition stage cash flow:500,000Total cash flowPresent Value(800,000)872,591119,840119,840 119,840119,840 119,840 119,840119,840 619,840Net Present Value72,591

The Week 8 Excel Spreadsheet for the Practice Set includes various financial metrics related to cash…

Answered: Week 8 Excel Spreadsheet to be used…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.1MBA

See similar textbooks

Similar questions

Use the following information Year 0 1 2 3 Cash flow -$1000 $300 $500 $700 WACC= 8.0% Calculate: a) NPV b) IRR c) Payback d) MIRR e) EAA
Problem 1: Consider the following cash flows and assume i = 10% for all analyses purposes: Project Cash Flows A D -$2,500 -$7,000 -$5,000 -$5,000 1 $650 -$2,500 -$2,000 -$500 2 $650 -$2,000 -$2,000 -$500 $650 -$1,500 -$2,000 $4,000 4 $600 -$1,500 -$2,000 $3,000 5 $600 -$1,500 -$2,000 $3,000 $600 -$1,500 -$2,000 $2,000 7 $300 -$2,000 $3,000 8 $300 a) Compute the project balances for Projects A and D, as a function of project year b) Compute the future worth values for Projects A and D at the end of service life. c) Suppose that Projects B and C are mutually exclusive. Assume also that the required service period is eight years and that the company is considering leasing comparable equipment that has an annual lease expense of $3,000 for the remaining years of the required service period for both projects. Which project is the better choice?
F Question Viewer Cost of Goods Sold - Depreciation = EBIT - Taxes (20%). = Unlevered net income + Depreciation - Additions to Net Working Capital - Capital Expenditures = Free Cash Flow Year 0 A. 17% B. 30% C. 25% D. 22% _-400000_ Year 1 424897.541 - 165000 - 85000 174897.541 - 34979.508 139918.033 85000 - 20000 Year 2 424897.541 - 165000 - 85000 174897.541 - 34979.508 139918.033 85000 - 20000 Year 3 424897.541 - 165000 - 85000 174897.541 - 34979.508 139918.033 85000 - 20000 204918.033 204918.033 204918.033 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%?
Asset End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6 $8,500 Cash Flow By using cell references to the given data and the function PV, Calculate the value of asset D.
Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.) xt Librai alculat esource Enter your answer in the answer box and then click Check Answer. Study 1 part remaining Check Answer Clear All ication Tools > Type here to search
Cash Flow Asset End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6 $8,500 By using cell references to the given datea and the function PV, Calculate the value of asset D.
After-Tax Cash Flows Below is a list of aspects of various capital expenditure proposals that the capital budgeting team of Anchor, Inc., has incorporated into its net present value analyses during the past year. Unless otherwise noted, the items listed are unrelated to each other. All situations assume a 40% income tax rate and an 11% minimum desired rate of return. 1. Pre-tax savings of $4,000 in cash expenses will occur in each of the next three years. 2. A machine is purchased now for $37,000 cash. 3. A long-haul tractor costing $27,000 will be depreciated $9,000, $12,000, $4,050, and $1,950, respectively, on the tax return over four years. 4. Equipment costing $200,000 will be depreciated over five years on the tax return in the following amounts: $25,000; $50,000; $50,000; $50,000; and $25,000. 5. Pre-tax savings of $8,800 in cash expenses will occur in each of the next six years. 6. Pre-tax savings of $7,000 in cash expenses will occur in the first, third, and fifth years from…
Cash Flow Asset End of Year Amount Appropriate Required Return B 1 through Infinity $300 15% using cell References to the given data, calculate the value of asset B
Balance of Cash after AJE (in unit dollars, two decimal places, use standard accounting rounding): After completing Part C of the term project you have the following: Revenue 100,000.00 15,000.00 45,000.00 CGS Costs Depreciation 15,000 Salaries 30,000 Net Income Assets Cash 40,000.00 110,000.00 20,000.00 Equipment 100,000.00 AD Equipment (10,000.00) Answer: Liabilities 70,000.00 Salaries Payable 70,000.00 Net Income 40,000.00 Total Liabilities + OE 110,000.00
Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%
Question 5 -/1 View Policies Current Attempt in Progress Marigold Corp.reported the following items for 2019: $50000 Income tax expense Contribution margin 120000 Controllable fixed costs 80000 Interest expense 62000 Total operating assets 28000 How much is controllable margin? O $50000 O $30000 O $40000 O $120000
Show the solution in good accounting form. Thank you! 1. What is the actual return on plan assets for the current year? a. ₱ 100,000 b. ₱ 430,000 c. ₱ 370,000 d. ₱ 400,000

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

SEE MORE TEXTBOOKS