Need to do Excel Spreadsheet attached. Should be pretty easy for an accountant

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Khushboo · Accepted Answer

8.14 Givens and Answer Sheet
	Chapter 8 Problem 12 Suggested Answers					Notes:  
	a).					One: Only enter answers into the "Green" Cells.
	Facts and Assumptions 					Two: You MUST use the Excel Formulas, do NOT simply put a number in the answer cell.
	Initial cost ($000 omitted)	$   28,000				Three: A few Cells may have some guidance to help you with the answers.
	Unit sales (000 0mitted)	400
	Selling price per unit, this year	$   60
	Variable cost per unit, this year	$   42
	Life expectancy (years)	8
	Salvage value	$0
	Depreciation	Straight line
	Tax rate	37%
	Nominal discount rate	18.8%													Year	Operating profit	After inflation	Profit after tax	Deprection tax bebefit	Cash flow
	Real discount rate	10.0%
	Inflation rate	8.0%													0					-28000
															1	7200	7776	4898.88	1295	6193.88
	Year	0	1	2	3	4	5	6	7	8					2	7200	8398.08	5290.7904	1295	6585.7904
	Initial  cost	$   28,000.00													3	7200	9069.9264	5714.053632	1295	7009.

Need to do Excel Spreadsheet attached. Should be pretty easy for an accountant

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