All flows considered in this exercise take place at the end of the specified year. We are at the end of year zero and considering investing in the company RnovexInc, which is subject to a corporate tax rate of 35%. RnovexInc would like to market a new service, called Rnobois, after conducting a market study, which cost $50,000. To carry out the project, RnovexInc will need an investment today to purchase equipment worth $35,000 with a useful life of 20 years. The purchase is amortized linearly, starting from the first year of operations. Additionally, RnovexInc will invest an additional $5,000 in maintenance costs to maintain the operational capacity of the equipment, starting from the fifth year, and each year thereafter. Therefore, the equipment can be used indefinitely beyond its useful life. This investment will be fully amortized during the following year: the investment of year 5 is fully amortized during the sixth year, the investment of year 6 is amortized during the seventh year... Sales projections for Rnobois provide for revenue of $20,000 in year 1. Revenue will increase by 8% up to year 5 inclusive and by 5% thereafter up to year 10 inclusive. The cost of goods sold is 55% of sales, and this margin applies to all products of the company. Additionally, $3,000 in administrative expenses occur each year, starting from year 1. Another service of RnovexInc, called Rnobrique, will experience a reduction in sales after the marketing of Rnobois. The decrease in Rnobrique sales will be $2,500 per year and will only occur during the first five years. Finally, for the Rnobois project, RnovexInc will need to make an additional investment in working capital of $3,000 today. Working capital needs will increase in the same way as revenues. It is assumed that the total cash flow of year 10 repeats forever with a growth rate of 4%. Work to be done using Excel. Read all the questions before answering, as it will influence how you create your Excel file. All cells must be linked. You should structure the file so that only the assumptions vary. Otherwise, you will have difficulty answering all questions without having to do several copy-pastes.

- I have to make an income statement with zero debt as presented for years 0 to 10. calculations must be performed by Excel and not by copying your numbers into the calculator. The last line of your table should indicate the net result with zero debt for each of the years.

- I have to make a statement of cash flows for years 0 to 10, clearly indicating, for each year, the amount of depreciation, investment expenses, and the variation in working capital needs. The last line of your table should indicate the available cash flows for each of the years

- i have to Calculate the NPV of the project using a return rate of 7% per year. You can directly use the NPV function or discount each individual cash flow. You will get your points if the process is clear.

- i have to create a graph of the NPV as a function of the discount rate. For simplification purposes, start your graph at a discount rate higher than the final cash flow growth rate. Use a 0.5% increase in the discount rate and do not exceed a discount rate of 15%.

- i have to, through using the graph, estimate the IRR of the project.

- Perform a sensitivity analysis of the NPV for a variation of +/- 1% of the final growth rate. You should obtain two different values for the sensitivity of the NPV.

- i have to make a scenario analysis by varying the final growth rate and the required rate of return. Vary the final growth rate between 1 and 5% (with a 1% increase) and the required rate of return from 10 to 16% (also with a 1% increase). Represent all this in a table.