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Table 2: Excel spreadsheet A B C D E Tax rate 30% Profit 4% growth rate p. x% 38.30% Sumsang project plan Year Investment Before-tax After-tax...

Question 3

Today is 1 January 2016. Sumsang company will start to deposit part of its after-tax profit to launch a new phone project in 3 years' time. The project launch date is 1 January 2019 and the required capital amount is 5 million dollars. Sumsang is planning to make 3 annual deposits into an investment fund. The assumed investment fund return rates of 2016-2018 are shown in table 2 (B6:B8). The first deposit will be made today (1 January 2016) and the last one will be made on 1 January 2018. Sumsang's current before-tax profit is 4 million dollars and it believes that its before-tax profit will increase by 4% every year. The company tax rate is 30%. The deposit amount is x% of Sumsang's after-tax profit.

a Describe the steps we need to take to produce aline chart to plot the investment fund return rates from 2016-2018

b. Give the Excel cell formula you would use to calculate the value of C8.

c.Give the Excel cell formula you would use to calculate the value of cell D8.

d. The x% value in cell B3 is calculated by using Goal Seek. Describe the steps we need to take to generate this result.

Table 2: Excel spreadsheetABCDETax rate30%Profit4%growth ratep.a.x%38.30%Sumsang project planYearInvestmentBefore-taxAfter-taxDepositreturn ratesprofitprofitamount-JO20164.0%$4,000,000$3,840,000$1,470,79920174.7%$4,160,000$3,993,600$1,529,63120184.3%$4,326,400$4, 153,344$1,590,8162019Total Accu-$5,000,000mulatedvalue
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