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Excel has hundreds of functions which make life easier for us as the user as we saw with some of the TVM functions in earlier projects. The IF function has the following syntax: =if(condition, entry...

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Excel has hundreds of functions which make life easier for us as the user as we saw with some of the TVM functions in earlier projects. The IF function has the following syntax: =if(condition, entry if true, entry if false). Condition is a mathematical expression that returns true or false. When the condition is true, the second entry is placed in the cell, otherwise the third entry is placed in the cell. Careful specification of conditions such as this is one way of helping to make sure that when in the future you use the model again, it will work correctly.
Answered Same Day May 26, 2021

Solution

Neenisha answered on May 28 2021
139 Votes
If Statement Ex
            Positive    Negative
                Version 1    Version2             Cutoffs    Percentage        Number    Answe
        Year 1    1.5%                    <10    10%
        Year 2    -3.0%                    10    20%
        Year 3    0.7%                    >10    30%
        Year 4    0.0%
Sheet1
    1
            0    1    2    3    4    5                Tax Rate    40.00%
        Cost    (2,900,000)                                    MACR Depreciation    5
        Revenue before tax        2,080,000    2,080,000    2,080,000    2,080,000    2,080,000                MACR Depreciation
        Operating expenses        (775,000)    (775,000)    (775,000)    (775,000)    (775,000)                Year    3 Year    5 yea
        Depreciation        (580,000)    (928,000)    (556,800)    (334,080)    (334,080)
        Cash Flow before tax        725,000    377,000    748,200    970,920    970,920                1    33.33%    20.00%
        Cash Flow after tax        435,000    226,200    448,920    582,552    582,552                2    44.45%    32.00%
        Depreciation        580,000    928,000    556,800    334,080    334,080
        After Tax Salvage Value                        306,000                3    14.81%    19.20%
        Increase in NWC    (60,000)                    60,000                4    7.41%    11.52%
                                                5    0.00%    11.52%
        Free Cash Flow    (2,960,000)    1,015,000    1,154,200    1,005,720    916,632    1,282,632                6    0.00%    5.76%
        DISCOUNT...
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