Excel Template 10-16A

# Excel Template 10-16A - \$540,000 Expected annual cash...

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Student Name: Class: Problem 10-16A ADK DELIVERY Net Present Value Calculations Alternative 1: Cash Inflows Amount Table Value Present Value Annual Cash Inflows Salvage Value Working Capital Recovery Cash Outflows Cost of Vans Working Capital Increase Net Present Value Alternative 2: Cash Inflows: Amount Table Value Present Value Year 1 Year 2 Year 3 Year 4 Salvage Value Cash Outflows Cost of Trucks Training Cost Net Present Value b. Present Value Indexes: Alternative 1 Alternative 2

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Given Data P10-16A: ADK DELIVERY Cash capital acquired \$3,000,000 Alternative 1: Cost of new vans
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Unformatted text preview: \$540,000 Expected annual cash inflow increase 210,000 Useful life of new vans 4 Combined salvage value of new vans \$75,000 Additional working capital needed 30,000 Alternative 2: Cost of new trucks \$600,000 Reduction in cash outflow-year 1 120,000 Reduction in cash outflow-year 2 240,000 Reduction in cash outflow-year 3 300,000 Reduction in cash outflow-year 4 330,000 Useful life of new trucks 4 Salvage value of new trucks \$60,000 Training costs required 12,000 Desired rate of return 16%...
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Excel Template 10-16A - \$540,000 Expected annual cash...

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