Flanky’s Manufacturer Of Custom Clothing Loan And Investment Analysis

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timer Asked: Apr 17th, 2019
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Question Description

Project Description:

Flanky’s, a small manufacturer of custom clothing for dogs and cats, is considering the purchase of a new building as part of its long-term strategic plan. You have been asked to conduct an analysis on the loan as well as an investment analysis using the NPV function based on an estimated series of cash flows generated by the new building and a required rate of return of 18%. For determining cash flows, the calculations will be from the bank’s perspective.

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Office 2016 – myitlab:grader – Instructions Excel Project YO16_XL_CH11_GRADER_PS2_AS - New Investment Analysis 1.2 Project Description: Flanky’s, a small manufacturer of custom clothing for dogs and cats, is considering the purchase of a new building as part of its long-term strategic plan. You have been asked to conduct an analysis on the loan as well as an investment analysis using the NPV function based on an estimated series of cash flows generated by the new building and a required rate of return of 18%. For determining cash flows, the calculations will be from the bank’s perspective. Instructions: For the purpose of grading the project you are required to perform the following tasks: Step Points Possible Instructions 1 Start Excel. Open the file named e06ch11_grader_h1_Building.xlsx. Save the file with the name e06ch11_grader_h1_Building_LastFirst, replacing LastFirst with your name. 0.000 2 On the BuildingAnalysis worksheet, in cell C5, calculate the amount to finance by subtracting the starting capital from the purchase price of the building. 5.000 3 In cell C10 calculate the end of period quarterly payment amount using the PMT function. Be sure the result is displayed as a positive number. 8.000 4 In cell C11 calculate the total cumulative interest that will be paid on the loan for all 28 endof-the-period quarterly payments. Format as Currency. Be sure the result is displayed as a positive number. 10.000 5 In cell C13 calculate the total cost of the loan by adding the amount financed to the total cumulative interest. 5.000 6 In cell F13, calculate the net present value of the investment using the NPV function. Format as Currency with 2 decimal places, if necessary. 8.000 7 In cell I7 calculate the straight-line depreciation value of the building for year one and copy the formula down through year 7. 10.000 8 In cells J7:J13, calculate the accumulated depreciation amount for each year. 10.000 9 In cells K7:K13, calculate the book value of the asset at the end of each year of its useful life. 10.000 10 In cell I17, calculate the declining-balance depreciation value of the building for year one and copy the formula down through year 7. 10.000 Updated: 04/28/2017 1 Current_Instruction.docx Office 2016 – myitlab:grader – Instructions Step Excel Project Points Possible Instructions 11 In cells J17:J23, calculate the accumulated depreciation amount for each year. 10.000 12 In cells K17:K23, calculate the book value of the asset at the end of each year of its useful life. 10.000 13 Select cells I23:K23, click the Border arrow in the Font group, and then click Thick Bottom Border. 4.000 14 Save the workbook, exit Excel, and then submit the file as directed by your instructor. 0.000 Total Points Updated: 04/28/2017 2 100.000 Current_Instruction.docx Loan Analysis Purchase Price Starting Capital $300.000 $175.000 Amount to Finance APR (Rate) Term (in years) Periods Per Year Investment Analysis Initial Investment RRR ($300.000) 18% Cash Flows Year 0 ($300.000) 6,75% 7 4 Quarterly Payment Total Cumulative Interest Total Cost of Loan 20190417175316alfarj_e06ch11_grader_h1_building.xlsx NPV 1 $95.000 2 3 4 5 6 7 $100.000 $110.000 $75.000 $55.000 $35.000 $25.000 Initial Cost $300.000 Year 1 2 3 4 5 6 7 Year 1 2 3 4 5 6 7 Asset Information Salvage Value Useful Life $125.000 7 Straight-Line Depreciation Yearly Depreciation Accumulated Expense Depreciation Book Value Declining Balance Depreciation Yearly Depreciation Accumulated Expense Depreciation Book Value 20190417175316alfarj_e06ch11_grader_h1_building.xlsx Create Date mm/dd/yyyy Mod. Date mm/dd/yyyy By Whom Firstname Lastname By Whom Firstname Lastname Description Create Date Sheet Name Creator Mod. Description Workbook Name e06ch11Building.xlsx Last Version Backup Name Purpose ...
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Tutor Answer

andythewxman
School: Carnegie Mellon University

Here is the first one. Let me know if you need any changes.

Loan Analysis
Purchase Price
Starting Capital
Amount to Finance
APR (Rate)
Term (in years)
Periods Per Year
Quarterly Payment
Total Cumulative Interest
Total Cost of Loan

$300,000
$175,000
$125,000.00

Investment Analysis
Initial Investment
RRR
($300,000)
18%
Cash Flows...

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Review

Anonymous
Goes above and beyond expectations !

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