ABC Corporation is considering an expansion project. To date they have spent $150,000 investigating the viability of the project and have decided to proceed. The proposed project will cost $1,500,000 in addition to the $150,000 that was spent on the feasibility study. The project will be depreciated over a 3 year MACRS class life. If the project is undertaken the company will need to increase its inventories by $500,000 and its accounts payable will rise by $200,000. The company will realize an additional $1,500,000 in sales over each of the next three years. The companys operating costs (not including depreciation) will increase by $750,000 a year. The companys tax rate is 34%. At t = 3, the projects economic life is complete but it will have a salvage value (before-tax) of $150,000 after three years. The projects WACC is 12%.

Depreciation would be MACRS 3 years

Year Rates

1 0.33

2 0.45

3 0.15

4 0.07

Can you please answer in an Excel format?