phase 5 capital budget concept

phase5.xlsx

FINC400 Unit 5 IP

FINC400 Unit 5 IP Template
	To Start: Fill in Cells C4 through C13 with the given information from the assignment directions.
	Bicycle Units	4,000
	Price per bicycle	$400
	Fixed Costs	$700,000
	Variable Cost per Bicycle	$75
	Initial Net Working Capital	$150,000
	Initial Machine Investment	1.5 mil
	Straight-Line Depreciation Time	5 yr
	Tax rate	30%
	Required rate of return	12%
	Machine sold at Year 5	$50,000
		Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
	Capital Expenditures	ERROR:#VALUE!					$50,000
	Change in Net Working Capital	($150,000)					$150,000
	Change in Revenue		$1,600,000	$1,600,000	$1,600,000	$1,600,000	$1,600,000
	Change in Variable Costs		$300,000	$300,000	$300,000	$300,000	$300,000
	Change in Fixed Costs		$700,000	$700,000	$700,000	$700,000	$700,000
	Depreciation		ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	EBIT		ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	Tax Rate * EBIT		ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	Depreciation		ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	Operating Cash Flow		ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	Total Project Cash Flow	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!	ERROR:#VALUE!
	NPV	ERROR:#VALUE!
	In the following textbox, answer the following question in 50 or fewer words: Should the project be accepted or not?