After many years trying to come up with an experience retail concept, you have finally found one. Its calledThe Guild. Building the Guild will cost approximately $17,000,000. It will include a number of pieces of machinery which in total cost $3,500,000 and training for the equipment will be an additional $3,000,000. In order to run the business, inventory will need to be increased by $5,000,000.The guild is expected to generate $20,000,000million in revenue in its first year of operation. Each year the companys revenue will grow by 12%.The companys cost of goods sold are 23% of sales while its total operating costs are $5,000,000. Most companies like the Guild trade at 5 times after tax cash flow. Use this multiple to calculate the terminal value for the company. The company will have a tax rate of 25%. The guild has a three part capital structure with common equity, preferred equity, and debt. The expected return on the stock market is9.6% andthe 10-year governmentbond is currently yielding 3.2%. Companies like The Guild have a beta of 1.1. Bonds for The Guild are currently trading at 85% of their par value, with a ten-year maturity, and a 6% coupon, paid semiannually. Preferred stock trades at $12 per share and pays a dividend of $1.25 per share.The companys capital structure is 30% common equity, 10% preferred equity, and 60% debt.1.Layout allthe companys cash flows.2.Calculate the NPV, IRR, and Payback period.3.To not move, add, or delete anyitems.

The Guild
Name
Label	Year 0	Label	Year 1	Year 2	Year 3	Year 4	Year 5
Construction Costs		Revenues
Machinery		Cost of Goods Sold
Training		Operating Costs
Depreciable Base		EBIT
Depreciation		After Tax EBIT
		Depreciation
Working Capital (inventory)		After Tax Cash Flow
Period 0 Cash Flow
		Label	Year 6	Year 7	Year 8	Year 9	Year 10
		Revenues
		Cost of Goods Sold
		Operating Costs
		EBIT
		After Tax EBIT
		Depreciation
		After Tax Cash Flow
		Cost of Preferred Equity		Cost of Debt		CF0
		Price		Price		CF1
Depreciable Base		Dividend		nper		CF2
CF0		rpe		pmt		CF3
NPV				par		CF4
IRR		Cost of Common Equity		rd		CF5
Payback		rfr				CF6
Terminal Value		beta				CF7
Cost of Preferred Equity		MRP				CF8
Cost of Equity		E[r]m				CF9
Cost of Debt		rce				CF10
WACC
Include ALL Financial Statement Items Required to Calculate After Tax Cash Flow.
Be Sure to provide labels for each.