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can you show me how you would layout this templet and answer by showing each cell done in excel. so i can reference each answer.
can you show me how you would layout this templet and answer by showing each cell done in excel. so i can reference each answer. thank you
B P12-25 Modified - use the template below for problem setup F 2 Mark McNibble is CFO for McNabb Fabrications, Inc Mark is considering a new project that involves the introduction of a new product. McNabb is in the 27 percent marginal tax bracket has a 15 percent required rate of return or discount rate for new investments. The new project is expected to last five years, and then, because this is somewhat of a fad product, it will be terminated. Given the following information, determine the net cash flows associated with the project and the project's NPV, profitability Index, and internal rate of return. Apply the appropriate decision criteria Cost of new plant and equipment: $225,000,000 Shipping and installation costs: $2,000,000 Unit sales: 300,000 in Yeart: 700,000 in Year 2: 1.000.000 in Year 3; 800,000 in Year 4,300,000 in Year 5. Sales price per unit: 5750/unit in Years 1-4, 5600/unit In Years Variable cost per unit $400/unit for years and increase at 2.5% each year for years 2-5 Annual fixed costs: $125,000,000 Working capital requirements: There will be an initial working capital requirement of $2,500,000 just to get production started. For each year, the total investment in net working capital will equal 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during Years 1-3, and then decrease in Year 4. Finally, all working capital is liquidated at the termination of the project at the end of Year 5. *The depreciation method: Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years 10 11 12 13 14 TS 16 17 TX 19 Start from scratch or utilize template from a previous problem. 20 21 22 23 Step by Step Solution
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