Setting up an Excel Spreadsheet for a Company
I need an example of how to set up an excel spreadsheet to calculate the following:
A spreadsheet for a production plant that a company will lease for 5 years at US$1,500,000 per year; it will cost the firm US$4,000,000 in capital (straight-line depreciation, 5 year life) in year 0; it will cost the firm an additional US$150,000 per year after the new production plant is brought online for other expenses; and it will generate an incremental revenue of US$3,500,000 per year. Use a 40% tax rate, a 10% cost of capital, and a 12% re-investment rate. Assume the company will use cash flow to finance the project.
And then I need to be able to discuss how the project would fair under hurdle rate scenarios of 10%, 15%, and 20% (based on MIRR).© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/setting-up-an-excel-spreadsheet-for-a-company-3ecj