I have completed all of the equations besides NPV. It doesn't show the numbers but...

60.1K

Verified Solution

Question

Accounting

I have completed all of the equations besides NPV. It doesn't show the numbers but they are all correct. NPV is the only one I need, please write it out in the excel formula. Thank you!!

image

Again just a reminder, I only need the NPV, thank you!

A B C DE Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? Input area: \begin{tabular}{|lr|} \hline Asset investment & $2,180,000 \\ Estimated annual sales & $1,645,000 \\ Costs & $610,000 \\ Tax rate & 21% \\ Project and asset life & 3 \\ Required return & 12% \\ \hline \end{tabular} (Use cells A6 to B10 from the given information to complete this question.) Output area: \begin{tabular}{ll} \hline Sales & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ Costs & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ Depreciation & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ \cline { 2 - 2 } EBT & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ Taxes & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ \cline { 3 - 3 } Net income & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ OCF & \#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\#\# \\ NPV & \\ \hline \end{tabular}

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students