ComputerAssignment4

ComputerAssignment4 - Computer Assignment 4: Go to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Computer Assignment 4: Go to Spreadsheet tab to do all work. Remember to use cell references for ALL calculations. Information in Inputs: Shrieves Casting Company is considering a new project. They expect to sell 1,800 units each year for three years at a price of $200 per unit. Variable costs are $80 per unit and fixed costs are $50,000 per year. The equipment costs $200,000, plus $10,000 of shipping and $30,000 of installation. It will be depreciated according to MACRS 3 year class. When the project ends in three years, Shrieves expects to sell the equipment for $100,000. This project requires an initial investment in net working capital, specifically $40,000 of inventories with $4,000 of Accounts Payable to help finance these inventories. In the inputs, numbers you need to calculate are shown in yellow. Make sure you use cell references! Then fill in all outputs, beginning with the Depreciation schedule, then the rest of the spreadsheet. You will first assume inflation is zero. Make sure your cash inflow and cash outflows are notated differently.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

ComputerAssignment4 - Computer Assignment 4: Go to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online