the two independent variables investment required 300000 percent debt financed 50 you are respon

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Investment Required $300,000 Percent Debt Financed 50% You are responsible for developing a model that analyzes the potential investment, providing valuations of alternate strategies and a sensitivity analysis of the results. Please enter formulas in the yellow boxes below to develop the model. 2020 2021 2022 2023 2024 2025 Income Statement Finished Goods Expense Depreciation Labor Overhead EBIT Interest Income (5% interest rate) Pretax Tax (30% tax rate) Net Income $200,000 ($60,000) ($100,000) ($10,000) $30,000 $200,000 ($60,000) ($1,000,000) ($10,000) $30,000 $200,000 {$60,000} ($1,000,000) ($10,000} $30,000 $200,000 {$50,000} ($100,000} {$10,000} $30,000 $200,000 ($60,000) ($100,000) ($10,000) $30,000 Shown as positive because it is an expense that will cease to exist. Interest Income is based on a 5% interest rate applied to prior year Net Cash (Cash minus Debt). $30,000 $9,000 $21,000 $33,030 $6,000 $21,000 $30,000 $9,000 $21,000 $30,000 $9,000 $21,000 $30,000 $9,000 $21,000 Balance Sheet (change in account) Cash PP&E Debt Equity ($150,000) $300,000 $150,000 Cash is equal to that of the previous year plus Cash Generated. Debt is equal to that of the previous year plus Issues (Retirement) of Debt. Equity is equal to that of the previous year plus Net Income (there are no Dividends). Cash Flow Statement Net Income Depreciation Cash Flow from Operations CapEx Cash Flow from Investing Issues (Retirement) Debt Cash Flow from Financing Cash Generated Net Income from the Income Statement Investment Required spread over the useful life (5 years) ($300,000) ($300,000) $150,000 $150,000 ($150,000) Debt based on Percent Debt Financed with 1/5th retired each year. Write a formula that calculates the Net Present Value (NPV) of the cash flows in Row 61 using a 10% discount factor. Change the 'Investment Required' in cell D27 to $200,000 and enter the resulting NPV value [not the formula] in the yellow box below. Keeping the $200,000 'Investment Required', change the 'Percent Debt Financed' to 0% and enter the resulting NPV in the yellow box below.

          Investment Required
$300,000
Percent Debt Financed
50%

You are responsible for developing a model that analyzes the potential investment, providing valuations of alternate strategies and a sensitivity analysis of the results. Please enter formulas in the yellow boxes below to develop the model.

2020  2021  2022  2023  2024  2025
Income Statement 
Finished Goods Expense  Depreciation  Labor Overhead  EBIT  Interest Income (5% interest rate)  Pretax Tax (30% tax rate)  Net Income
$200,000  ($60,000)  ($100,000)  ($10,000)  $30,000
$200,000  ($60,000)  ($1,000,000)  ($10,000)  $30,000
$200,000  {$60,000}  ($1,000,000)  ($10,000}  $30,000
$200,000  {$50,000}  ($100,000}  {$10,000}  $30,000
$200,000  ($60,000)  ($100,000)  ($10,000)  $30,000

Shown as positive because it is an expense that will cease to exist.
Interest Income is based on a 5% interest rate applied to prior year Net Cash (Cash minus Debt).
$30,000  $9,000  $21,000
$33,030  $6,000  $21,000
$30,000  $9,000  $21,000
$30,000  $9,000  $21,000
$30,000  $9,000  $21,000

Balance Sheet (change in account) 
Cash  PP&E  Debt  Equity
($150,000)  $300,000  $150,000

Cash is equal to that of the previous year plus Cash Generated.
Debt is equal to that of the previous year plus Issues (Retirement) of Debt.
Equity is equal to that of the previous year plus Net Income (there are no Dividends).

Cash Flow Statement 
Net Income  Depreciation  Cash Flow from Operations  CapEx  Cash Flow from Investing  Issues (Retirement) Debt  Cash Flow from Financing  Cash Generated
Net Income from the Income Statement  Investment Required spread over the useful life (5 years)
($300,000)  ($300,000)  $150,000  $150,000  ($150,000)

Debt based on Percent Debt Financed with 1/5th retired each year.

Write a formula that calculates the Net Present Value (NPV) of the cash flows in Row 61 using a 10% discount factor.

Change the 'Investment Required' in cell D27 to $200,000 and enter the resulting NPV value [not the formula] in the yellow box below.

Keeping the $200,000 'Investment Required', change the 'Percent Debt Financed' to 0% and enter the resulting NPV in the yellow box below.

the two independent variables investment required 300000 percent debt financed 50 you are responsible for developing a model that analyzes the potential investment providing valuations of al 70868

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