*answer yellow sections only and answers must start with a formula or excel input

INCOME STATEMENT Sales 24,092,400 17,982,000 COGS Other expenses Depreciation 2,878,800 786,000 2,445,600 434,400 EBIT Interest Taxable income Taxes (40%) Net income 2,011,200 804,480 1,206,720 Dividends 2$ 246,000 Add to RE 960,720 BALANCE SHEET Liabilities & Equity Assets Current Assets Current Liabilities Accounts Payable Notes Payable Cash Accounts rec. 438,048 858,816 1,841,616 1,486,200 3,765,864 1,735,680 2,594,496 Inventory Total CA Total CL Total Long-term debt 4,590,000 Fixed assets Shareholder Equity Net PP&E 14,778,816 Common stock 180,000 Retained earnings Total Equity 11,180,184 11,360,184 Total Assets Total L&E 18,544,680 18,544,680 TABLE 2 House Price $398,000 Down payment 15% 15-year loan interest rate monthly periods in 15-year loan 30-year loan interest rate 3.90% 180 4.55% monthly periods in 30-year loan 360 TABLE 3 Tall Oaks Company is a mature firm that currently pays a small dividend. Tall Oaks just paid an annual dividend of $1.60 per share. The dividend will grow at a rate of 3% per year. The required rate of return on Tall Oaks stock is 10.3% per year. Dividend just paid $1.60 Required Return on stock 10.30% Constant growth rate You are considering a new product launch: Equipment for the project will cost $875,000 The project will have a four-year life, and have no salvage value. Depreciation is straight-line to zero over the four years. The required return on the project is 11%, and the tax rate is 35%. Projected annual sales and cost figures are shown below (sales and costs are estimated to be identical for each year 1-4) Based on the information given, calculate OCF and NPV Equipment cost Project length (years) Required return $875,000 4 11% 35% Tax rate $3,948,000 $2,869,000 Annual Sales Annual Variable costs $345,000 Annual Fixed costs Annual Depreciation Annual EBIT Annual Taxes Annual OCF Cash flows YEAR 1 2 4 PROJECT NPV *you MUST use NPV function in excel