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Build a cash flow table as given below using Microsoft Excel when all dollar values are in thousands. Make sure appropriate equations are used
Build a cash flow table as given below using Microsoft Excel when all dollar values are in thousands. Make sure appropriate equations are used to calculate PVs and add all PVs to find NPV. Table 1 Year 1 Year 2 (S values in thousands) Q1 02 Q3 Q4 Q1 Q2 03 Year 3 Q3 Q4 Q1 20 Year 4 Q2 Q3 Q4 Q1 29 Q2 03 Q3 Q4 Development cost -1,250 -1,250 -1,250 -1,250 Ramp-up cost -1,000-1,000 Marketing & support cost -250 -250-250 Production cost -2,000 Production volume Unit production cost Sales Revenue Sales volume Unit price 2,000 2,000 5,000 5,000 5,000 -0.4 -0.4 -0.4 4,000 4,000 4,000 5,000 5,000 5,000 0.8 0.8 0.8 -250 -250 -250 -250 -250 -250 2,000-2,000 -2,000 5,000 5,000 5,000 -0.4 -0.4 -0.4 4,000 4,000 4,000 5,000 5,000 5,000 0.8 0.8 0.8 -2.000 -2,000 5,000 5,000 -0.4 -0.4 4,000 4,000 5,000 5,000 0.8 0.8 -250 -250 -250 -2.000 -2,000 -2,000 5,000 5,000 5,000 -0.4 -0.4 4,000 4,000 5,000 5,000 0.8 0.8 -0.4 4,000 5,000 0.8 Period Cash Flow PV Year 1, r 10% -1,250 -1,250 -1,250 -2,250 -1,250 -1,250 -1,220 -1,190 -2,089 -1,132 1,750 1,547 1,750 1,750 1,509 1,472 1,750 1,750 1,436 1,401 1,750 1,750 1,750 1,367 1,334 1,301 1,750 1,750 1,269 1,239 1,750 1,208 Project NPV 8,203 What is the NPV when Development Cost changes to $1,812 thousands for Q1, Q2, Q3, and Q4 during Year 1. Hints: Provide the answer in thousands of dollars. Do not include units (dollar sign) or commas in the answer (sample answer: 1250)
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