Finance Assignment For Mrs Lynn Only
Attached PDF has the problem (1st attachment) and excel sheet to perfom the work.
Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why.
> <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
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” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks Capital Budgeting Project
W & T Racket Designs is the leading racquet company. They are known for their innovation of new technology for
racquet sports. W & T is planning on implementing a new racquet into production to replace their old tour model
racquet. The old model was very popular with most customers, but W & T wants to implement new technology to
improve this model. The company tries to produce a new racquet every 3‐8 years to try and lead industry standards.
When a new racquet design is introduced, the company must invest in a new mold which includes updating the existing
machinery.
The company has invested roughly $1 million into Research & Development of the new technology. The new technology
implemented will be called Flex‐Braid. Flex‐Braid uses a combination of graphite, carbon, and other composites woven
together to form the frame of the racquet. W & T expects Flex‐Braid to give the racquet more rigidity and also increases
feel and control, which is what most of their clientele want.
The mold for the old racquet was produced 3 years ago at a cost of $150,000. Shipping on the old mold was $5,000. In
addition, W & T incurred a set‐up fee of $20,000. If the old racquet is not replaced, management estimates variable
costs of $55 per racquet, fixed costs of $50,000 annually, and a production capacity of 12,000 racquets annually over the
next 5 years. It is estimated that the old racquet will continue to sell for $120 for at least the next 5 years. In addition,
W & T currently has an offer of $20,000 for the old mold. If not replaced, it is estimated that the old mold will only sell
for $12,000 5 years from today. For this reason, the old mold is being depreciated on a straight‐line basis to a book
value of $12,000 over 8 years. The company’s marginal tax rate is 35%, and its cost of capital is 15%. This project is
equally as risky as a typical company project. Therefore, the required return on this project is equal to the company’s
cost of capital.
The question that has risen is what type of mold should be used to produce the new racquet? Due to the new racquet’s
material, the old mold will not be sufficient. Due to the differing qualities in the potential new molds, the revenues,
expenses, initial investments, and future market values of the new molds can vary tremendously. W & T has several
options for the new mold.
One option that W & T can use is Mold #173:
The cost of this mold will be $494,208. Due to the distance from the factory, shipping on this mold will be $9,002, and
installation will be $34,151. It is estimated that variable production costs on this new mold will be $45 per racquet, fixed
costs of $67,041 annually, and a production capacity of 12,505 racquets annually over the next 5 years. If this mold is
selected, the racquet is expected to sell for $134. Sales on W & T’s other existing racquets are expected to be $5,000
lower each of the next 5 years with the introduction of this top notch racquet. The accounting department has informed
you that this mold will depreciate using a 5‐year MACRS depreciation schedule. It is expected that this mold will be sold
at the end of 5 years for $37,756. In addition, if this mold is selected the level of inventory on hand is expected to rise
by $1,513, the level of supplies on hand is expected to decrease by $1,476, and $400 of the inventory can be financed
through the supplier with an increase in accounts payable.
1. Calculate the estimated Net Initial Investment and estimated incremental cash flows for the next 5 years if the
existing mold is replaced with this new mold.
2. Calculate NPV, IRR, Profitability Index, Payback, and Discounted Payback for your project.
3. At a minimum, compare your result to 3 other molds (be sure their answers are correct). Which mold number
would you choose? Explain why. > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks > <= "
” should be available after selecting “ Begin Work ” and inputting requested info Begin Work CF Analysis Capital Budgeting Project Last Name First Name & formulas do not need to work for any project, just for your project and any other that would payback in that same year.
Year 5 Depreciation Payback Discounted Payback Chris McNeil: x:y:z:9831811785 file
Click the “ Hide Sheets ” button before releasing file to students. student Instr CF Analysis Instr , no) on which to display student name, ID (yes or no)
yes yes CF Analysis intsetup recordedWkbks 0 Hide Sheets recordedWkbks
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)
Instr
Capital Budgeting Project
Last Name
First Name
ID
Click the button below to begin this assignment.
This is a graded assignment. Do your own work (required). Do not, for example, copy the work of others.
CF Analysis
worksheet
If the button does not work, reopen this file and select “enable macros” or “enable content”.
Please note that aspects of your work are catalogued to ensure academic integrity.
Mold #
Original Cost of Old Asset
Banner ID
Cost of New Asset
Market Value New Asset
Year
5
Do not insert, delete, move, merge or name any rows, columns, or range.
Market Value Old Asset Time
0
Do all of your work ONLY by using formulas in the beige
cells
Market/Salvage Value Old Asset Year 5
Do no work outside of those ranges, except to enter input values in the yellow cells
Current Age of Old Equipment
Program each cell to show the correct sign based on the cash flow impact of the number. All subtotals MUST be a SUM.
Depreciable Life of Old Equipment
Write your formulas so that they will work for ANY numbers entered in the yellow cells.
Increase (Decrease) in Current Assets
Accept/Reject should be programmed to show exactly the word Accept or Reject reflecting your decision on this project.
Increase (Decrease) in Current Liabilities
Payback
Discounted Payback
Increase (Decrease) in
Revenue
Payback & Discounted Payback should NOT be text, unless it does not payback in which case the text should read “NEVER”.
Increase (Decrease) in
Expenses
Marginal Tax Rate
MACRS RATES
Required Return
Depreciation
Previous Years Acc. Depr.
Year
1
Year 2
Year
3
Year
4
Depreciation Old Equipment
Book Value Old
Depreciation New Equipment
Book Value New
Year 0 1 2 3 4 5
Formula
Revenue
Expenses
Depreciation
EBIT
Taxes
Net Income
OCF
ATSV: Sale of Old Asset
ATSV: Lost Sale of Old Asset
Cost of New Asset
ATSV: Sale of New Asset
Increase in NWC
NWC Reversal
Net Initial Investment
CFFA
Accept/Reject?
NPV
IRR
Profitability Index
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
Chris McNeil: x:y:z:9831811785
intsetup
Setup for Integrity Macro – – worksheet in
student
Recommendations: Release a renamed copy of this file to students.
mode (instructor or student)
File for students must have an “xlsm” extension.
password – – for worksheet protection
54321
← Make a note of this password before selecting “Hide Sheets.” Password required to “unhide.”
student info – recorded after supplied by student
initial visible worksheet
worksheets on which to display student name, ID
student LAST NAME – – cell address in which to display
d3
g3
student FIRST NAME – – cell address in which to display
e3
h3
student ID – – cell address in which to display
f3
i3
protect worksheets (
yes
Integrity Code – – 10 digit random number generated by Excel for the student
worksheets to release to students
worksheets to remain hidden (never release)
recordedWkbks
cells for hidden comment markers
worksheet CF Analysis
cells
c23:g32,b34:g34, b16:g19
randomize values
worksheet
cells
up to “x” % higher (e.g., 15.0 for up to 15% higher)
down to “x” % lower (e.g., -12.0 for as much as 12% lower)
rounding (e.g., 1000 for thousands; and 0.01 for 2 decimal places)
worksheet for recording of activated Excel files (cannot change)
Macro has run indicator (= TRUE after run)