ࡱ> Root EntryRoot Entry FRFk@ CompObj'fWorkbookHnMSDigSig(Author)$=`  !"#$%&'()*+,-./0123456789:;<>?@ABCDEFGIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~SummaryInformation( \@$0- >\3 0% RL  Verdana Verdana`hۍ0WXw 9\@$0- 9\ 0%   RL  Verdana VerdanaDhۍ0WXw .\@$0- .\ D0% % % % " !% %   $\ll  Tt2^JkAA2^1LDiscounted Cash Flow in Working Capital Decisions  %  % % % % % % % % % % % % " !% %   $l%   T\3kAA3-LCapital Budgeting for a New Product: Solution            % %  % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % " !% %   $l% % % % %   T2kAA2fLScroll down to see the completed cash flow table. Scroll down and right to see the calculation table.     T2kAA2cLThe internal rate of return shows that the new product should not be launched as it cannot achieve   T2AA2L|the desired 25 per cent.% % % " !% %   l% % " !% %   l' % (     ( &% % Ld!??% % Ld#!??% % Ld!??% % Ld!??% % Ld'!??% % Ldk!??'%   ( &% #}6m}% Ld#}k}#}J!??% ( % " !%&:WMFCC   ll 0  K@0 ll  % % % " !%   l'%    ( &% 6l% Ldkl!??% 6% Ld!??% "   l  '' ' ,l-  -- @ !-- @ !-99- @ !9-JJ- @ !J-[[- @ ![-ll- @ !l-}}- @ !}-- @ !-- @ !-- @ !-l- @ !k-##- @ !#-- @ !-- @ !-''- @ !'-kk- @ !k-  @ !- -- @ !-- @ !- -- @ !-- @ !--Arial-  2  1 -- @ !  2 ( 2] -  - @ !   2 : 3^ -::- @ !:  2 K 4 -KK- @ !K  2 \ 5s -\\- @ !\  2 m 6 -mm- @ !m  2 ~ 7 -~~- @ !~  2 8 -- @ !  2 9] -- @ !  2 #A^  -- @ !  2 ]B  -$$- @ !$  2 Cs  -- @ !  2 D  -- @ !  2 EE  -((- @ !(-"System-'-- ,l-   @ !) -    @ !)#-    @ ! 9-    @ !9# Tahoma-  .2 3Microsoft Business Planner        Verdana-  2 M2Go to Article:    Verdana Ref-  Verdana-    Verdana-- --'- -  ,ll\$ Q2 ^21Discounted Cash Flow in Working Capital Decisions  -  - - - - - - - - - - --'- -  ,l$-  K2 3-Capital Budgeting for a New Product: Solution            - - ----------------------------------'--  ,l$----- 2 2fScroll down to see the completed cash flow table. Scroll down and right to see the calculation table.     2 2cThe internal rate of return shows that the new product should not be launched as it cannot achieve e  +2 2the desired 25 per cent.---'--  ,l--'--  ,l-   -- @ !-- @ !#-- @ !-- @ !-- @ !'-- @ !k-  -}#}m- @ !J}#- -'- ,l,l ,l ---'- ,l-   -l- @ !l-- @ !-'0V *H G0C10 *H 0g +7Y0W03 +70%7)O•0 0 *H TehF-P?00)ъĽ5ǛSV0  *H 010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.0 970512070000Z 991231070000Z010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.00  *H 0. h|,-.  WSu3* [4 Z%}XsjxqX)X^-bXq"X/6MJ;"V~!lJGj6 -Ӵ90  *H :>{թy=q#+(ߌe,ZbVkbEƢ5"r-| CMlX 5ʉp*}a qfbB="2"d$006C!FXF%`0  *H 010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.0 970512070000Z 991231070000Z01'0%U VeriSign Time Stamping Service10U VeriSign Trust Network1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.10U VeriSign, Inc.10UInternet00  *H 0aGܴ^i b1FI:?xZcEO n06- o' Q`5OTOз,B Ѝ^㖴"IBlӘV.:X"e匫xGBh[-}0  *H m`_i{p+b#D Q#tI'\q5+ൖ苧KsH ڋ %VNGWF8V!&;-%2Λ@GmGv0;~*1+ݰUApF-,~0 0 yfnжneq0  *H 0a10UInternet10U VeriSign, Inc.1301U *VeriSign Commercial Software Publishers CA0 980416000000Z 990416235959Z0]10UInternet10U VeriSign, Inc.1301U *VeriSign Commercial Software Publishers CA1F0DU =www.verisign.com/repository/CPS Incorp. by Ref.,LIAB.LTD(c)961>0<U 5Digital ID Class 3 - Microsoft Software Validation v21 0 UUS10U Washington10URedmond10UMicrosoft Corporation10U Microsoft Corporation0 0  *H  0&dm{AO o*q.S26h5IؖeS zpm̳*02X|k%gw #10|0u0a10UInternet10U VeriSign, Inc.1301U *VeriSign Commercial Software Publishers CAyfnжneq0 *H  0 *H  1  +70 +7 10  +70 *H  1W#fB3;歎)6/0 +7 10ZXExercise Capital Budgeting for a New Product<:http://bookshelf.msn.com/z/msbp/teleport/fromCD/office.asp0  *H GL,yoj}J[fbt|SX ڼDm@9@WEt\QaVm˩؇"m>c0sVT.ͨr( W@UPRl@:M. 2ot.WraBPl 10 *H  100010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.C!FXF%`0 *H Y0 *H  1  *H 0 *H  1 981201005254Z0 *H  1}U.vA=ҙd@0  *H ,8Wj=2'pc@ LPٰ".{GlȘJsJ:'*zonymLnQL<]D.Lg`MtPМ.WjS @`\pMicrosoft Corporation Ba==-j,8X@"1Arial1Arial1Arial1Arial1 Verdana1Verdana1 Tahoma1Tahoma1Tahoma1Tahoma1 Arial1@ Tahoma1Tahoma1@ Tahoma1Verdana1Verdana1Verdana1$Arial1Verdana1& Verdana Ref1& Verdana Ref1& Verdana Ref1& Verdana Ref1&? 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Scroll down and right to see the calculation table. The internal rate of return shows that the new product should not be launched as it cannot achieve the desired 25 per cent.-Capital Budgeting for a New Product: Solution.Capital Budgeting for a New Product: WorksheetoReorder the information from the "Question" tab into the table below, then scroll to the right and input values for the lower and higher discount rates in the appropriate cells on the calculation table. The sheet will then do the calculations for you. If you need help completing the new-product cash flow table click on the "Solution" tab to see the completed table.New-Product Cash Flow-Capital Budgeting for a New Product: QuestionThis exercise will help to consolidate your understanding of present value calculations and show you how to use the New Project Investment Evaluator template. The table below summarizes the forecast costs and revenue for your new product, sales of which are not expected to affect sales of existing products. You also know that a proposal generating less than 25 per cent on a discounted cash flow basis is unlikely to be worth considering. Use the worksheet on the "Worksheet" tab to answer the following questions: New Project Investment Evaluator Present ValueB(1) Work out the net cash flow for each year from year 0.5 onward.Microsoft Business PlannerNote: If you save this template as a workbook, note the workbook's file name and location. To edit the workbook next time, you must open it using Excel. 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