Accessibility tab summary: Students please use the information below to complete the question completing the required cells. Given information for this question is presented in rows $7$ through $21.$ The required answers are in rows $30$ through $47.$

"You have been hired as a consultant for Pristine$$Urban$-$Tech Zither, Inc. $($PUTZ$),$ manufacturers of fine zithers. The market for zithers$$is growing quickly. The company bought some land three years ago for $$1\mathrm{.}9$ million in$$anticipation of using it as a toxic waste dump site but has recently hired another company$$to handle all toxic materials. Based on a recent appraisal, the company believes it could$$sell the land for $$2\mathrm{.}2$ million on an aftertax basis. In four years, the land could be sold for$$$$2\mathrm{.}4$ million after taxes. The company also hired a marketing firm to analyze the zither$$market$,$ at a cost of $$275,000.$ An excerpt of the marketing report is as follows:

The zither industry will have a rapid expansion in the next four years. With the$$brand name recognition that PUTZ brings to bear, we feel that the company$$will be able to sell $5,200,5,900,6,500,$ and $4,800$ units each year for the next$$four years, respectively. Again, capitalizing on the name recognition of PUTZ,$$we feel that a premium price of $$435$ can be charged for each zither. Because$$zithers appear to be a fad, we feel at the end of the four$-$year period, sales$$should be discontinued.

PUTZ believes that fixed costs for the project will be $$375,000$ per year, and variable$$costs are $20$ percent of sales. The equipment necessary for production will cost$$$$2\mathrm{.}85$ million and will be depreciated according to a three$-$year MACRS schedule.$$At the end of the project, the equipment can be scrapped for $$405,000.$ Net working$$capital of $$150,000$ will be required immediately. PUTZ has a tax rate of $22$ percent,$$and the required return on the project is $13$ percent. What is the NPV of the project?"

Input area:

$$

Original cost of land $$1,900,000$

Current land value $$2,200,000$

Land value in $4$ years $$2,400,000$

Marketing study $$275,000$

$$ Year $1$ Year $2$ Year $3$ Year $4$

Sales quantity $5,2005,9006,5004,800$

Sales price $$435$

Fixed costs $$375,000$

Variable costs $20\%$

Equipment costs $$2,850,000$

Pretax salvage value $$405,000$

Net working capital $$150,000$

Tax rate $22\%$

Required return $13\%$

Depreciation $33\mathrm{.}33\%44\mathrm{.}45\%14\mathrm{.}81\%7\mathrm{.}41\%$

$($Use cells A$7$ to F$21$ from the given information to complete this question. You must use the built$-$in Excel function to answer this question. Enter a $"0"$ for any value that should not be included. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.$)$

Output area:

Aftertax salvage value $$

Sell equipment $$

Taxes $$

Aftertax cash flow $$

$$ Year $0$ Year $1$ Year $2$ Year $3$ Year $4$

Revenue $$

Fixed costs $$

Variable costs $$

Depreciation $$

EBT $$

Taxes $$

Net income $$

OCF

Fixed assets $$

Land $$

Marketing study

Net working capital $$

Total cash flow $$

NPV