open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off?Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates.X✔ fx Function: NPV; Formula: Add, Subtract; Cell ReferencingC1 Function: NPV: Formula: Add, Subtract; Cell ReferencingA113141516ASARANASANGARRThunder Corporation, an amusement park, is considering a capital& Investment in a new exhibit. Amusement parks need to rotate exhibits to7 keep people interested. Additional information concerning the potentialinvestment follows.1718192021222324252627B20Using Excel to Determine the Net Present ValuePROBLEMOriginal cost of investmentEstimated sales value at end of 5 yearsExpected increase in annual cash flows.Estimated useful life in yearsBorrowing rateCost of capitalD$ 136,00060,00025,0005 years8.0%10.0%GHYes NoCheck for UpdatesStudent Work AreaRequired: Provide input into cells shaded in yelow in this template. Use the NPVfunction with cell referencing to the Problem area in the input cell. Use a mathformula in the field in which the cash flow for the salvage value is expected tooccur, and separately, to account for the initial cash flow in the formula after thefunction has been inputtedNet present valueCalculate the net present value of this project to the company using Excel's NPVfunction.

NPV is calculated as the difference between the cash inflows and cash outflows. In the given case,…

Thunder Corporation, an amusement park, is considering a capital nvestment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0%

Thunder Corporation, an amusement park, is considering a capital nvestment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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