Assignment Question

SBS Corporation has developed a new industrial detergent that can be used in motor vehicle garages. It would cost RM$1\mathrm{.}5$ million to buy the equipment necessary to manufacture the blenders, and initially, it would require net operating working capital equal to $15\%$ of the $1$st year sales amount. Annual net operating working capital will remain at $15\%$ of the next year's sales. The project would have a life of $5$ years.

If the project is undertaken, it will be operated for the entire $5$ years.

The firm believes it could sell $120,000$ units per year. The detergents would sell for RM$12$ per unit. After the first year, SBS intends to increase the sales price by $3\%$ annually.

The variable cost is RM$4\mathrm{.}50$ per unit and will increase at an inflation rate of $3\%.$ The company$$s fixed costs would be RM$420,000$ in Year $1$ and would also increase at a rate of $3\%$ annually.

The equipment would be depreciated over a $5-$year period, using the straight$-$line method. The annual depreciation will be calculated based on a salvage value of the equipment at the end of the project$$s $5-$year life of RM$150,000.$ The company, however, estimated the machine could be sold as scrap for RM$50,000.$ The corporate tax rate is $25\%.$ The weighted average cost of capital is $12\mathrm{.}5\%.$

$1.$ Develop a spreadsheet model and use it to find the project$$s NPV$,$ IRR, and payback. PLease dont use AI$,$ and please answer in spreadsheet format please