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can you please do all steps on Microsoft Excel sheet. Rainbow is manufacturing plush toys. The firm thinks that manufacturing of plastic toys would be

can you please do all steps on Microsoft Excel sheet.
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Rainbow is manufacturing plush toys. The firm thinks that manufacturing of plastic toys would be profitable. Marketing department made a marketing research that costs $30.000. After that research Rainbow is determined for the production. New toy requires a new machine. New toys will be produced in the facility of the firm which was bought 5 years ago. This facility can be sold for $150.000 (after taxes) now. New machine costs $200.000 to buy. It has 5 years of useful life and can be sold for $30.000 at the end of usedful life (straight line depreciation). The manufacturing units will be 5000 in the first year, 8000 in the second year, 12000 in the third year, 10000 in the fourth and 6000 in the fifth year. These toys will be sold for $30 per unit. Prices will increase by %2 in each year. The cost of manufacturing is $10 in the first year and will increase by %10 in each of the following years. Tax rate: %20 Net working capital is the difference between current assets and current liabilities. Rainbow knows that it will need raw materials before manufacturing and it will also have some cash as a caution. Credit sales will also increase. In the year of investment the net working capital requirement is $10.000 net working capital amount will be 1. Year: $10.000, 2nd year $16320, 3. year $24970, 4. year $21.200, last year it will be 0. Target capital structure is %40 debt, %60 equity. The firms should issue bonds with a coupon rate of %20 and a nominal value of $1000, the price of bonds are $950, the flotation cost is $50 per bond. Company paid $2 of dividend per share recently and the expected growth rate is %8, the price of share is $12 per share and the flotation cost is $2 for the new issues. For equity financing this firms should issue shares. Compute the cash flows, wacc, npy and IRR. Should this project be accepted? Why? Draw NPV profile graph. Tip: Take the difference between the specific year and the previous year to calculate the change in net working capital each year.

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