Homework Help is Here – Start Your Trial Now!
Business
Accounting
1 A 2 3 4 5 M&O 6 7 Period of time 8 Period of lease taken, n 9 i P 21 22 Refurbishment cost B In 2016, Google rented 1000 acres of a historic California airbase in the San Francisco Bay Area for $1.16 billion via a 60-year lease. Annual M&O is expected to be $6.3 million. In addition, Google will refurbish three hangars at a cost of $2.6 million 4 years from now. It included the following estimates: P = $1.16 billion; M&O = $0.0063 billion per year; refurbishment cost = $0.0026 billion in year 4; n = 60 years; and i = 15% per year. $1,160,000,000 $6,300,000 per year $2,600,000 10 11 Required: 12 Note: Use cells A2 to C9 from the given information to complete this questio 13 Years, n 20 30 40 50 60 a. You calculated the AW over 60 years. Now, use spreadsheet functions to display AW, PW, the capitalized cost (CC), and the difference between PW and 14 CC. 15 16 AW 17 PW 18 CC 19 Difference 20 D 4 years 60 years 15% per year 23 Principal in rental plus P of refurbishment 24 25 26 27 28 29 30 31 CR value E b. Help the CFO of Google perform a capital recovery analysis on the agreement for several retention periods, that is, n values, varying from 20 to 60 years (in 10-year increments) and infinity. F

1 A 2 3 4 5 M&O 6 7 Period of time 8 Period of lease taken, n 9 i P 21 22 Refurbishment cost B In 2016, Google rented 1000 acres of a historic California airbase in the San Francisco Bay Area for $1.16 billion via a 60-year lease. Annual M&O is expected to be $6.3 million. In addition, Google will refurbish three hangars at a cost of $2.6 million 4 years from now. It included the following estimates: P = $1.16 billion; M&O = $0.0063 billion per year; refurbishment cost = $0.0026 billion in year 4; n = 60 years; and i = 15% per year. $1,160,000,000 $6,300,000 per year $2,600,000 10 11 Required: 12 Note: Use cells A2 to C9 from the given information to complete this questio 13 Years, n 20 30 40 50 60 a. You calculated the AW over 60 years. Now, use spreadsheet functions to display AW, PW, the capitalized cost (CC), and the difference between PW and 14 CC. 15 16 AW 17 PW 18 CC 19 Difference 20 D 4 years 60 years 15% per year 23 Principal in rental plus P of refurbishment 24 25 26 27 28 29 30 31 CR value E b. Help the CFO of Google perform a capital recovery analysis on the agreement for several retention periods, that is, n values, varying from 20 to 60 years (in 10-year increments) and infinity. F

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please use Excel for formula not just number , I will give thumb up , 

1 A 2 3 4 5 M&O 6 7 Period of time 8 Period of lease taken, n 9 i P 21 22 Refurbishment cost B In 2016, Google rented 1000 acres of a historic California airbase in the San Francisco Bay Area for $1.16 billion via a 60-year lease. Annual M&O is expected to be $6.3 million. In addition, Google will refurbish three hangars at a cost of $2.6 million 4 years from now. It included the following estimates: P = $1.16 billion; M&O = $0.0063 billion per year; refurbishment cost = $0.0026 billion in year 4; n = 60 years; and i = 15% per year. $1,160,000,000 $6,300,000 per year $2,600,000 10 11 Required: 12 Note: Use cells A2 to C9 from the given information to complete this questio 13 Years, n 20 30 40 50 60 a. You calculated the AW over 60 years. Now, use spreadsheet functions to display AW, PW, the capitalized cost (CC), and the difference between PW and 14 CC. 15 16 AW 17 PW 18 CC 19 Difference 20 D 4 years 60 years 15% per year 23 Principal in rental plus P of refurbishment 24 25 26 27 28 29 30 31 CR value E b. Help the CFO of Google perform a capital recovery analysis on the agreement for several retention periods, that is, n values, varying from 20 to 60 years (in 10-year increments) and infinity. F
Transcribed Image Text:1 A 2 3 4 5 M&O 6 7 Period of time 8 Period of lease taken, n 9 i P 21 22 Refurbishment cost B In 2016, Google rented 1000 acres of a historic California airbase in the San Francisco Bay Area for $1.16 billion via a 60-year lease. Annual M&O is expected to be $6.3 million. In addition, Google will refurbish three hangars at a cost of $2.6 million 4 years from now. It included the following estimates: P = $1.16 billion; M&O = $0.0063 billion per year; refurbishment cost = $0.0026 billion in year 4; n = 60 years; and i = 15% per year. $1,160,000,000 $6,300,000 per year $2,600,000 10 11 Required: 12 Note: Use cells A2 to C9 from the given information to complete this questio 13 Years, n 20 30 40 50 60 a. You calculated the AW over 60 years. Now, use spreadsheet functions to display AW, PW, the capitalized cost (CC), and the difference between PW and 14 CC. 15 16 AW 17 PW 18 CC 19 Difference 20 D 4 years 60 years 15% per year 23 Principal in rental plus P of refurbishment 24 25 26 27 28 29 30 31 CR value E b. Help the CFO of Google perform a capital recovery analysis on the agreement for several retention periods, that is, n values, varying from 20 to 60 years (in 10-year increments) and infinity. F
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS