Homework Answers
| Now | 1 | 2 | 3 | 4 | 5 | |
| Purchase of Equipment | 60000 | |||||
| Investment in WC | 100000 | |||||
| Sales | 200000 | 200000 | 200000 | 200000 | 200000 | |
| COGS | 125000 | 125000 | 125000 | 125000 | 125000 | |
| Out of Pocket Op Cost | 35000 | 35000 | 35000 | 35000 | 35000 | |
| Overhaul of Equipnment | 5000 | |||||
| Salvage value of equipment | 10000 | |||||
| Working capital released | 100000 | |||||
| Total Cash Flows | 160000 | 40000 | 40000 | 40000 | 35000 | 150000 |
| Disc Factor @ 14% | 1 | 0.877193 | 0.769468 | 0.674972 | 0.59208 | 0.519369 |
| Present Value of Cash Flows | 160000 | 35088 | 30779 | 26999 | 20723 | 77905 |
| Net Present Value | 191493 |
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1 Chapter 13: Applying Excel 3 Data 4 Example E 5 Cost of equipment needed $60,000...
part 1 part 2 Data Example E Cost of equipment needed Working capital needed Overhaul of...
part 1
part 2
Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales Cost of goods sold Out-of-pocket operating costs Discount rate $60,000 $100.000 $5,000 $10,000 $200,000 $125,000 $35,000 14% Enter a forma into each of the cells marked with a ? Below Exhibit 13-8 Years 13 14 Now (60,000) (100,000) Purchase of equipment Investment in working capital Sales Cost...
NEED HELP! Chapter 13: Applying Excel Data Example E Cost of equipment needed $280,000 Working capital...
NEED HELP! Chapter 13: Applying Excel Data Example E Cost of equipment needed $280,000 Working capital needed $60,000 Overhaul of equipment in four years $30,000 Salvage value of the equipment in five years $25,000 Annual revenues and costs: Sales revenues $395,000 Cost of goods sold $235,000 Out-of-pocket operating costs $75,000 Discount rate 15 % a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3...
2. The company is considering a project involving the purchase of new equipment. Change the data...
2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel Data 4 $ 5 6 7 $ 340,000 20,000 40,000 25,000 $ $ Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues...
For example, in cell 22 enter the formula-10 Note: The present value factors could be computed...
For example, in cell 22 enter the formula-10 Note: The present value factors could be computed using the built in Excel function PV but we recommend using the formulas in Appender 38 Verify that your worksheet matches the example in the text The net presentou should now be between $50.5 and 565 depending on the precision of the calculations you do not get an answer in this Check your worksheet by changing the discount to 10 ange, find the error...
The company is considering a project involving the purchase of new equipment Change the data area...
The company is considering a project involving the purchase of new equipment Change the data area of your worksheet to match The following: Use Exhibit 13B-1 and Exhibit 13B-2 (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel 3 Data 250.000 55.000 30.000 20.000 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years B Salvage value of the equipment in five years 9 Annual revenues and costs...
The company is considering a project involving a purchase of new equipment. Change the data area...
The company is considering a project involving a purchase of new equipment. Change the data area of your worksheet to match the following: Cost of new equipment needed: $370,000 Working capital needed: $45,000 Overhaul of equipment in four years: $30,000 Salvage value of equipment in five years: $25,000 Annual revenues and costs: Sales revenues: $430,000 Cost of goods sold: $250,000 Out-of-pocket operating costs: $70,000 Discount rate: 15% 1. What is the net present value of the project? 2. The internal...
a. What is the net present value of the project? (Negative amount should be indicated by...
a. What is the net present value of the
project? (Negative amount should be indicated by a minus
sign. Round your present value factor to 3 decimals and round all
other intermediate calculations to nearest whole
dollar.)
c. The internal rate of return is between what two whole
discount rates (e.g., between 10% and 11%, between 11% and 12%,
between 12% and 13%, between 13% and 14%, etc.)?
d. Reset the discount rate to 13%. Suppose the salvage value is...
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period....
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 17%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years $ 275,000 $ 86,000 $ 10,000 $ 13,000 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 420,000...
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period....
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 15%. After careful study, Oakmont estimated the following costs and revenues for the new product: $ 145,000 63,000 9,500 13,500 Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years Annual revenues and costs: $ 280,000 $ 135,000 $ 73,000 Sales revenues Variable expenses Fixed out-of-pocket operating...
PROBLEM 13-18 Net Present Value Analysis [LO13-2] Oakmont Company has an opportunity to manufacture and sell a new...
PROBLEM 13-18 Net Present Value Analysis [LO13-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four. period. The company's discount rate is 15%. After careful study, Oakmont estimated the followi costs and revenues for the new product: $130,000 $60,000 $8,000 $12,000 Cost of equipment needed Working capital needed ....... Overhaul of the equipment in two years ........... Salvage value of the equipment in four years ......... Annual revenues and costs: Sales revenues Variable expenses...
part 1
part 2
Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales Cost of goods sold Out-of-pocket operating costs Discount rate $60,000 $100.000 $5,000 $10,000 $200,000 $125,000 $35,000 14% Enter a forma into each of the cells marked with a ? Below Exhibit 13-8 Years 13 14 Now (60,000) (100,000) Purchase of equipment Investment in working capital Sales Cost...
2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel Data 4 $ 5 6 7 $ 340,000 20,000 40,000 25,000 $ $ Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues...
For example, in cell 22 enter the formula-10 Note: The present value factors could be computed using the built in Excel function PV but we recommend using the formulas in Appender 38 Verify that your worksheet matches the example in the text The net presentou should now be between $50.5 and 565 depending on the precision of the calculations you do not get an answer in this Check your worksheet by changing the discount to 10 ange, find the error...
The company is considering a project involving the purchase of new equipment Change the data area of your worksheet to match The following: Use Exhibit 13B-1 and Exhibit 13B-2 (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel 3 Data 250.000 55.000 30.000 20.000 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years B Salvage value of the equipment in five years 9 Annual revenues and costs...
a. What is the net present value of the
project? (Negative amount should be indicated by a minus
sign. Round your present value factor to 3 decimals and round all
other intermediate calculations to nearest whole
dollar.)
c. The internal rate of return is between what two whole
discount rates (e.g., between 10% and 11%, between 11% and 12%,
between 12% and 13%, between 13% and 14%, etc.)?
d. Reset the discount rate to 13%. Suppose the salvage value is...
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 17%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years $ 275,000 $ 86,000 $ 10,000 $ 13,000 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 420,000...
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 15%. After careful study, Oakmont estimated the following costs and revenues for the new product: $ 145,000 63,000 9,500 13,500 Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years Annual revenues and costs: $ 280,000 $ 135,000 $ 73,000 Sales revenues Variable expenses Fixed out-of-pocket operating...
PROBLEM 13-18 Net Present Value Analysis [LO13-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four. period. The company's discount rate is 15%. After careful study, Oakmont estimated the followi costs and revenues for the new product: $130,000 $60,000 $8,000 $12,000 Cost of equipment needed Working capital needed ....... Overhaul of the equipment in two years ........... Salvage value of the equipment in four years ......... Annual revenues and costs: Sales revenues Variable expenses...
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