I have attached the HW question - I am sooo stuck - Please help I do not need the whole thing solved - just some guidance on the below - I have this in excel with some formulas bu I am stuck and not sure if I am on the right track.
Equipment Cost $ 800,000.00 $800,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00
Net Revenues $ 300,000.00 $ 315,000.00 $ 330,750.00 $ 347,287.50 $ 364,651.88
Less: Labor/Maintenance Costs $ (100,000.00) $ (105,000.00) $ (110,250.00) $ (115,762.50) $ (121,550.63)
Utilities Costs $ (10,000.00) $ (10,500.00) $ (11,025.00) $ (11,576.25) $ (12,155.06)
Supplies $ 18,750.00 $ 18,750.00 $ 18,750.00 $ 18,750.00 $ 18,750.00
Incremental Overhead
Operating Income
Equipment Salvage Value $288,750.00 $298,250.00 $308,225.00 $318,698.75 $329,696.19
Net Cash Flow
Net Present Value (NPV)
Internal Rate of Return (IRR)
Corporate Cost of Capital
Equipment Cost $ 800,000.00 $800,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00
Net Revenues $ 300,000.00 $ 315,000.00 $ 330,750.00 $ 347,287.50 $ 364,651.88
Less: Labor/Maintenance Costs $ (100,000.00) $ (105,000.00) $ (110,250.00) $ (115,762.50) $ (121,550.63)
Utilities Costs $ (10,000.00) $ (10,500.00) $ (11,025.00) $ (11,576.25) $ (12,155.06)
Supplies $ 18,750.00 $ 18,750.00 $ 18,750.00 $ 18,750.00 $ 18,750.00
Incremental Overhead
Operating Income
Equipment Salvage Value $288,750.00 $298,250.00 $308,225.00 $318,698.75 $329,696.19
Net Cash Flow
Net Present Value (NPV)
Internal Rate of Return (IRR)
Corporate Cost of Capital