9.Go to the Earnings Projections worksheet. Pranjali has entered most of the income andexpense data on the worksheet. She knows the income from municipal grants will be$25,000 in 2022, and estimates it will be $40,000 in 2026. She needs to calculate theincome from municipal grants in the years 2023-2025. The grants should increase at aconstant amount from year to year.Project the income from Municipal grants for 2023-2025 (cells D5:F5) using a LinearTrend interpolation.10. Pranjali also needs to calculate the income from insurance reimbursements in the years2023-2025. She knows the starting amount and has estimated the amount in 2026. Shethinks this income will increase by a constant percentage.Project the income from Insurance reimbursements for 2023-2025 (cells D7:F7) using aGrowth Trend interpolation.11. Pranjali needs to calculate the payroll expenses in the years 2023-2026. She knows thepayroll will be $140,000 in 2022 and will increase by at least five percent per year.Project the payroll expenses as follows:a.b.Project the expenses for Payroll for 2023-2026 (cells D13:G13) using a GrowthTrend extrapolation.Use 1.05 (a 5 percent increase) as the step value.PranialiĮ

Linear constant trend will be = Difference in Income/Difference in YearsDifference between Income of…

Answered: constant amount from year to year.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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Use Excel to solve the following problem. Assume that as a local government financial analyst you are asked to project the feasibility of a loan to a proposed public service venture for its start-up funding. The venture’s principals estimate that, at the end of 5 years, they will be able to pay back up to $800,000 from revenues accruing to the venture’s activities. Assuming that your organization’s current “average cost of capital” is 4.8% (the “discount rate”). Assuming monthly compounding, what is the maximum amount your government can commit to the venture for its start-up? (I have worked this problem out on my own, I just want to be sure I used the correct formulas.)
Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows. Assume the following annual estimates: -trip revenue of $20,000 -depreciation expense of $1,000 -gas and maintenance of $3,000 -insurance of $900 -tax rate of 25% - 5 year project - 10% discount rate - for sake of calculation ease, all cash flows occur on the last day of the year. What is the present value of your OCF? $61,031 $49,565 $36,861 $57,240 $28,000
Dawn is preparing a home office to perform subcontract projects for midsized architect firms. She plans to use $13,000 of her own funds, which currently generate a return of 4% per year. The remainder of financing will be provided by a $9,000 bank loan carrying a 9% per year interest rate. She hopes to realize a return of 3% above the average cost of capital to establish her office, and she realizes that the factors of inflation and risk should also be considered. Her decision is to add another 1.5% per year to compensate for these elements. What is the MARR she should use when evaluating projects? the Marr she should use is __%
Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.
Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows. Assume the following annual estimates: -trip revenue of $20,000 -depreciation expense of $1,000 -gas and maintenance of $3,000 -insurance of $900 -tax rate of 25% - 5-year project - 10% discount rate - for sake of calculation ease, all cash flows occur on the last day of the year. What is the present value of your OCF? Use the $ symbol and round to the nearest dollar
jacob has an opportunity to invest in a new retail development in his building. The initial investment is $53,000 and the expected annual cashflows thereafter are {$2,400; $4,000; $4,000; $7,500; $11,000; $11,000; $14,000; $14,000}. What is Jacob's IRR on this investment? (Allow two decimals in the percentage but do not enter the % sign.)
Trinity has a project costing $2,050,000 that will have the following after tax cash flows in years 1-5: Year 1 2 3 4 5 CF 905,000 -175,000 800,000 -150,000 790,000 If the WACC is 7.50%, find the MIRR and NPV. Show your work
Write legibly show diagrams Mr. Alhambra has instructed his bank to establish a trust fund that will provide P10,000 per year for the first five years then P8000 per year for the next 10 years and then will provide P7,000 per year thereafter to help pay for the upkeep on a memorial garden. The first of these payments would begin on Jan1, 2009, He also wishes to provide P100,000 every 8 years for replacement to start Jan 1, 2015. Suppose it is now Jan 1, 2004, how much should be in the trust fund today if interest rate is 5% compounded annually?
McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund into compliance with HB-301. The company has already deposited $500,000 in each of the last 5 years. Beginning in year 6, McCarthy will increase its deposits by 15% per year through year 20. How much will be in the fund immediately after the last deposit, if the fund grows at a rate of 12% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.
Let's say you have the opportunity to invest in a project that will require you to invest $133,292.00 today. You will receive positive after tax cash flows of $37,000 at the end of each of the next six years. At the end of that sixth year, you will also receive a terminal value payment of $22,000 after tax. Your cost of capital is 11.0%. What is the NPV of the project? Round to the nearest $ and use the $ symbol..and use a comma in your number if applicable. No decimals.
Franklin Templeton has just invested $9,260 for his son (age one). This money will be used for his son’s education 18 years from now. He calculates that he will need $71,231 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Enter your answer as a whole percentage (i.e., 0.12 should be entered as 12).)
You plan to set up an endowment at your alma mater that will fund $180,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 6.4 percent, compounded annually, how much do you need to donate to the university today, so that the first scholarships can be awarded beginning one year from now? (Round answer to 2 decimal places, e.g. 52.75.)

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