Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.
A company is investigating an activity that would generate the following incremental year-end cash flows over the next four years:
| Purchase of office building immediately |
$230,000 |
| Increase in revenues in years 1-4 |
$80,000 per year |
| Reduction of costs in years 1-4 |
$20,000 per year |
| Payment of additional taxes in years 2-4 |
$30,000 per year |
| Sale of building in year 4 |
$380,000 |
| Payment of tax when building is sold |
$50,000 |
Prepare a cash flow spreadsheet to summarize this information.