FIN370_r10_Frank_Smith_Plumbing_Week_4.xlw

FIN370_r10_Frank_Smith_Plumbing_Week_4.xlw - Frank Smith...

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Frank Smith Plu Data Needed for anal Project Year-1 Year-2 Cost of Capital (borrowing) 12.00% Cost of Truck $200,000 Cost of additional equiment attached to truck $15,000 Tax rate 35% $70,000 $70,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% * The proposed truck has an estimated economic life of seven years but will be treated as a five Calculate the following -- light yellow highlight Year-0 Year-1 Year-2 Depreciation Expense Tax Depreciation to add back Projected Truck Net Cash Flow Decision Criteria Pay Back Period Years Discounted Pay Back Period (DPB)** Years Net Present Value Internal Rate of Return
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Unformatted text preview: Profitability Index Discounted Cash Flow Needed for DPB Calc. Recommendation Annual Before Tax & Depreciation Truck Projected Earnings Annual Before Tax & Depreciation Truck Projected Earnings Annual Before Tax Truck Projected Earnings → Annual Projected Truck Earnings → umbing lysis: Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 $65,000 $60,000 $55,000 $50,000 $40,000 $30,000 19.2% 11.5% 11.5% 5.8% 0.0% 0.0%-year MACRS property for depreciation purposes. ted cells need to be completed Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 a: s:...
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  • Fall '15
  • TonyMoses
  • Net Present Value, Internal rate of return, five-year MACRS property

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