Q Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. A company is investigating the feasibility of purchasing a machine at the present time for $200,000. The following information pertains to the acquisition and use of the machine over the next five years: In year one the cash revenues generated by the machine are expected to be $76,000, and these revenues are expected to increase by 6% year-over-year in each of the remaining 4 years that they own the machine. The machine is expected to be sold at the end of 5 years for its estimated salvage value of $20,000. Expenses directly associated with the generation of the annual revenues noted above are expected to be 65% of the revenues in year one, 64% of the revenues in year two, 63% of the revenues in year three, 62% of the revenues in year four, and 61% of the revenues in year five, and these expenses include an annual depreciation expense of one-fifth of the cost (minus the salvage value) of the asset each year for the 5 years that the asset is held. The machine will require a major overhaul requiring a cash payment of $40,000 at the end of year three. Prepare a cash flow spreadsheet to summarize the information above. [Note: Please use the format that is illustrated in chapter 2 of the textbook for this assignment, and for simplicity purposes you can ignore income taxes in this problem.] PreviousNext

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