Assume your firm is considering a theoretical project it will undertake next year. Undertaking this project results in no cannibalization of your firms existing sales. Use 13820.46 as Free-Cash Flow and consider 10% as belonging to this hypothetical project and as an appropriate starting point for the projects Free-Cash Flow.

Assume the project life is exactly 5 years in length. Assume undertaking the project increases your firms sales 8% in year 1. Assume there are no new tax implications (i.e. use the effective tax rate from your most current income statement 28%). Assume a 5% growth rate in sales over each of the ensuing years. Assume machinery costing 145.5 Million dollars must be purchased to undertake this project. Assume it has zero residual or salvage value. Assume an increase in net operating working capital of 3% is required each year (one through five).

Use the WACC you calculated above to calculate the NPV. Also calculate the IRR and MIRR. Provide the excel spreadsheet you create.