Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. hi! this is for my capital budgeting project. plea

Hi! This is for my Capital Budgeting Project. Please help me find the Discounted Payback...

90.2K

Verified Solution

Question

Finance

Hi! This is for my Capital Budgeting Project. Please help me find the Discounted Payback Period. Thank you! Also please use Excel. And will also appreciate an explanation of the answer.
image
image
Tables Add-ins Charts R15 v X for G H 3 A B D E 2 Calculations of Investment in Property, Plant and Equipment 3 Sin Million 4 Existing Balance as of September 26, 2020 $36,766 5 Investment in PPE @ 10% $3,677 6 Salvage Value @ 5% 1,383 7 Useful life (Years) 12 8 9 Annual Depreciation (using SLM) $191.17 10 11 12 13 Computation of Free Cash Flow from Project 14 S in Million 15 EBIT @ 18% of Project Cost 662 16 Less: Operating tax @ 35% -232 17 NOPAT 430 18. Add Depreciation 191.17 19 Gross Cash Flow 621.17 20 Investment in Working Capital 21 CAPEX 22 23. Free Cash Flow (FCF) 621.17 24 Sheet1 Ready Accessibility Good to go 24 $ in Million 621.17 8.71% 3677 25 26 Net Present Value (NPV) 27 28 Free Cash Flow 29 Discount Rate 30 Cost of Project 31 NPV 32 PVAF (8.71%, 12 Years) 33 PVF (8.71%, 12 Years) 34 The Present Value of Cash Outflows 35 The Present Value of Cash Inflows 36 The Present Value of Salvage Value (net of tax) 37 38 Net Present Value (NPV) 39 40 41 IRR = 13% 42 7.26654 0.36708 -3677 4513.76 0 836.76

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following table for an eight-year period:   Year T-bill return Inflation   Year 1 7.36%        8.64%           Year 2 8.39           12.27              Year 3 5.94           6.87              Year 4 5.42           4.93              Year...

Finance
Q

consider the symptomology of PTSD and how trauma can affect children and adolescents. Then, select a...

Psychology
Q

Context can influence our expectations and so it can influence our perceptual set. Describe one way...

Psychology
Q

6 What is a stem cell 7 Though the original chimera was found in Greek...

Biology
Q

Give the equation of the function whose graph is described The graph of y x...

Calculus
Q

Exercise 11-2 Pina Company acquired a plant asset at the beginning of...

Accounting
Q

Statement of owners equity Brenda Tooley owns and operates Speedy Delivery Services. On January 1,...

Accounting
Q

Complete the contribution margin income statement for the business last month, when Bethany drove 2,640...

Accounting
Q

Hello, I need to find out how to project a companies next year financial...

Accounting
Q

(Q1-3.) Yonsei Cafe decides to purchase a new roasting machine. The roasting machine is supposed...

Accounting
Q

Discuss the two (2) other taxes that should be considered when setting up operations in...

Finance
Q

Garza & Gray Realty has sales of $68,900, dividends of $1,960, and net income of...

Finance