Chapter 8 - Pearson Learning Solutions

360 PART THREE Long-Term Investment Decisionsa. Create a spreadsheet to calculate the initial investment.b. Create a spreadsheet to prepare a depreciation schedule for both the proposedand the present machine. Both machines are depreciated under MACRS usinga 5-year recovery period. Remember, the present machine has only 3 years ofdepreciation remaining.c. Create a spreadsheet to calculate the operating cash inflows for DamonCorporation for both the proposed and the present machine.d. Create a spreadsheet to calculate the terminal cash flow associated with theproject.Web ExerciseGo to the book’s companion websiteat www.prenhall.com/gitman to findthe Web Exercise for this chapter.Remember to check the book’s websiteat www.prenhall.com/gitman to findadditional resources, including WebExercises and a Web Case.2008935971Principles of Managerial Finance, Brief Fifth Edition, by Lawrence J. Gitman. Copyright © 2009 by Lawrence J. Gitman. Published by Prentice Hall.