Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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i need the correct excel input for the NPV

File
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B24
✓
Calibri (Body)
Xfx NPV(B6, B17:B19) - B5
11
✓
Α' Α' BIUab D
A
B
C
D
E
F
G
H
1
2
3
Esfandairi Enterprises is considering a new three-year expansion project that
requires an initial fixed asset investment of $2.18 million. The fixed asset will
be depreciated straight-line to zero over its three-year tax life, after which
time it will be worthless. The project is estimated to generate $1.645 million
in annual sales, with costs of $610,000. The tax rate is 21 percent. If the
required return is 12 percent, what is the project's NPV?
4 Input area:
56
6 Asset investment
$2,180,000
7 Estimated annual sales
$1,645,000
8 Costs
$610,000
9 Tax rate
21%
10 Project and asset life
3
12%
11 Required return
12
13 (Use cells A6 to B10 from the given information to complete this question.)
14
15 Output area:
16
17 Sales
$1,645,000
18 Costs
$610,000
19 Depreciation
726,667
20 EBT
$308,333
21 Taxes
64,750
22 Net income
$243,583
23 OCF
$970,250
24 NPV
25
$1
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Transcribed Image Text:File Home Insert Share Formulas Data Review View Help Draw B24 ✓ Calibri (Body) Xfx NPV(B6, B17:B19) - B5 11 ✓ Α' Α' BIUab D A B C D E F G H 1 2 3 Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 4 Input area: 56 6 Asset investment $2,180,000 7 Estimated annual sales $1,645,000 8 Costs $610,000 9 Tax rate 21% 10 Project and asset life 3 12% 11 Required return 12 13 (Use cells A6 to B10 from the given information to complete this question.) 14 15 Output area: 16 17 Sales $1,645,000 18 Costs $610,000 19 Depreciation 726,667 20 EBT $308,333 21 Taxes 64,750 22 Net income $243,583 23 OCF $970,250 24 NPV 25 $1
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