# Discounted Cash flow

Anonymous

Question description

Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet. "Attached Below" and Compare the cost of the truck to the cash flow records plus Compile your calculations in a Microsoft® Excel® document and show and explain within Excel spreadsheet how those solutions are obtained for each financial calculation showing "Excel Notations" and making good detailed Recommendations highlighted in yellow based on "Frank Smith Plumbing's Financial Statement" spreadsheet that is "Attached Below"

Appreciate any help and good detailed explanation I can receive from in obtaining those calculations, especially in knowing how to obtain answers for the discounted cash flow needed for DPB Calculation listed under "Decision Criteria" on the spreadsheet. Attached as well is the "Frank Smith Case Study" that goes with the Financial Statement spreadsheet. Thanks!

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

(Top Tutor) Studypool Tutor
School: Rice University
Studypool has helped 1,244,100 students
flag Report DMCA

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors