can you solve these questions attached are screenshots for the excel file

Complete your work in Excel and submit to Canvas by due date/time. Clearly mark (highlight) your answers You have just been hired by HP Inc. (ticker HPQ) in their capital budgeting division. Your first assignment is to determine the free cash flows and NPV of a proposed new type of tablet computer similar in size to an ipad but with the operating power of a high-end desktop system. Development of the new system will initially require an initial capital expenditure equal to 10% of HP Inc. Net Property, Plant, and Equipment (PPE) at the end of fiscal year 2019. The project will then require an additional investment equal to 10% of the initial investment at the end of the first year of the project, a 5% increase at the end of the second year [Year2=Y1*(1+0.05)], and a 1% increase in the third, fourth, and fifth years. The product is expected to have a life of five years. First-year revenues for the new product are expected to be 3.0% of HP Inc. total revenue for the fiscal year 2019. The new product's revenues are expected to grow at 15% for the second year then 10% for the third and 5% annually for the final two years of the expected life of the project. Your job is to determine the rest of the cash flows associated with this project. Your boss has indicated that the operating costs and net working capital requirements are similar to the rest of the company and that depreciation is straight-line 5-year life for capital budgeting purposes. Since your boss hasn't been much help (welcome to the "real world"!), here are some tips to guide your analysis: HP Inc financial statements - financial statements are provided in Excel file 1. You are now ready to estimate the Free Cash Flow for the new product. Compute the Free Cash Flow for each year by following the framework discussed in class: EBIT EBIT (1-t) + Depreciation -CapEx Change in NWC Other adjustments -Free Cash FlowSet up the timeline and computation of free cash flow in separate, contiguous columns for each year of the project life. Be sure to make outflows negative and inflows positive. a. Before you are ready to calculate operating income (EBIT) you need to estimate EBITDA for the project - assume that the project's profitability will be similar to HP Inc. existing projects in 2019. Estimate EBITDA/Sales profit margin for HP Inc. in 2019 from the income statement; apply this profit margin to calculate EBITDA for every year of the project. Note: you do not need to estimate any items between Sales and EBITDA on the income statement (COGS, SG&A, etc.); b. Determine the annual depreciation of the CapEx in this project by assuming HP Inc. depreciates these assets by the straight-line method over a 5-year life. c. Determine HP Inc. tax rate by using the income tax rate the company paid in 2019; apply this rate to calculate EBIT(1-t) for all years of the project. d. Calculate the net working capital required each year by assuming that the level of NWC will be a constant percentage of the project's sales. Use HP Inc. 2019 NWC/Sales to estimate the required percentage. (Use only cash, accounts receivable, accounts payable, and inventory to measure working capital. Other components of current assets and liabilities are harder to interpret and not necessarily reflective of the project's required NWC.) e. To determine the free cash flow, deduct the additional capital investment and the change in net working capital each year. f. Assume that all working capital and 50% of remaining book value will be recovered at the end of the project. 2. Calculate: a. NPV of the project with a 11.0% cost of capital b. IRR of the project c. Payback periodHPQ Exercise Assumptions 0 1 2 3 4 5 Revenue Cash A/R Inventory A/P NWC NAME HP INC TICKER SYMBOL: HPQ PRIMARY SIC CODE: 3570 STOCK EXCHANGE 11 New York Stock Exchange CUSIP: 404341 STATEMENT OF FINANCIAL POSITION Fiscal Year: 2015 2016 2017 2018 2019 (FYR Ending) (31OCT2015 ) (31OCT2016 ) (31OCT2017 ) (310 012018) (3IOCT2019 ) ASSETS Cash & Equivalents 17,433 000 6 288.000 8,146.000 5.877.000 4,537.000 Receivables - Total (Net) 21,511.000 6,609.000 7,162.000 3.003.000 8,939.000 Inventories - Total 6,485 000 4,484.000 3,786.000 6 062.000 3,734.000 Prepaid Expenses Current Assets - Other 6.358 000 1,047.000 1,224.000 1,445.000 967.000 Current Assets - Total 51,787 600 18,468.000 22,313.000 21,387.000 20,177.000 Plant, Property & Equip (Cross) 26,475.000 6,084.000 5,953.000 6.109.000 7,037.000 Accumulated Depreciation 15,385 604 4,348.000 4,080.000 3,911.000 4,243.000 Plant, Property & Equip (Net) 1,090 CO0 1,736.000 1,879.000 2,198.000 2,794.000 Investments at Equity Investments and Advances - Other 4,368 000 1,641.000 1,756.000 1,006.030 98.000 Intangibles 34,953 000 5,622.000 5,622.000 6,421.000 7,083.000 Deferred Charges 742 004 .000 .000 Assets - Other 3,940.000 1,543.000 1,339.000 3,610.000 3,365.000 TOTAL ASSETS 106,882 000 29 010.000 32,913.000 34.622.000 33,467.000 LIABILITIES Accounts Payable 15,956 600 11,103.000 13,279.000 14.816.000 14,793.000 Notes Payable 564 000 27.000 976.000 898.000 50.000 Accrued Expenses 16.321 600 6.477.000 5,835.000 7.417.000 6, 187.000 Taxes Payable 830 C04 231.000 214.000 340.000 237.000 Debt (Long-Term) Due In One Year 2,321 000 $1.000 26000 565.000 307.000 Other Current Liabilities 6,199 604 919.000 1,012.000 1 095.000 3,719.000 Total Current Liabilities 42,191 000 18,308.000 22,412.000 25,131.000 25,293.000 Long Term Debt 21,780.604 6,758.000 6,747.000 4.524.000 4,780.000 Deferred Taxes (Balance Sheet) 295.004 1,116.000 1,410.000 100.000 Investment Tax Credit .000 Liabilities - Other 14,465 000 6,217.000 5,752.000 5.506.000 4,527.000LIABILITIES Accounts Payable 15,956 000 11,103.000 13,279.000 14.816.000 14,793.000 Notes Payable $64.000 27.000 976.000 898.000 50.DO0 Accrued Expenses 16.321 000 6,477.000 6,835.000 7.417.000 6, 187.000 Taxes Payable 830 000 231.000 214.000 340.000 237.000 Debt (Long-Term) Due In One Year 2,321 000 $1.000 96.000 565.000 307.000 Other Current Liabilities 6,199.000 919.000 1,012.000 1.095.000 3,719.000 Total Current Liabilities 42,191.000 18 308.000 22,412.000 25,131.000 25,293.000 Long Term Debt 21,780 000 6,758.000 6,747.000 4.524.000 4,780.000 Deferred Taxes (Balance Sheet) 295 000 1,116.000 1,410.000 100.000 60.000 Investment Tax Credit .000 Liabilities - Other 14,465 000 6 217.000 5,752.000 5.506.000 4,527.000 Noncontrolling Interest - Redeemable TOTAL LIABILITIES 78,731 000 $2 399.000 36,321.000 35,261.000 34,660.000 SHAREHOLDERS' EQUITY Preferred Stock .000 Common Stock 17.00 16.000 16.000 15.000 Capital Surplus 1,963 000 1,030.000 380.000 663.000 $35.000 Retained Earnings (Net Ocher) 25,787000 4,936.000 3,804.000 -1,318.000 2,043.000 Less: Treasury Stock Shareholders Equity - Parent 27,768 000 3,389.000 3,409.000 -639.000 1,193.000 Noncontrolling Interest - Nonredeemable 383 000 TOTAL SHAREHOLDERS EQUITY 28,151.000 -3,389.000 -3,405.000 639.000 -1,193.000 TOTAL LIABILITIES AND EQUITY 106,882 000 29,010.000 32,913.000 34,622.000 33,467.000 INCOME STATEMENT Fiscal Year: 2015 2016 2017 2018 2019 (FYR Ending) (310CT2015 ) (31OCT2016) (31OCT2017) (310012018) (31OCT2019 ) Sales (Net) 108,355 000 48 238.000 52,056.000 $8.472.000 38,756.000 Cost of Goods Sold 75,226 000 8 924.000 42,125.000 47.355.000 16,958.000 Gross Profit 28,129 000 2.314.000 9,931.000 11,117.000 11,798.000 Selling, General, & Admin Expenses 15,687 000 3.450.000 5,565.000 6.263.000 6,867.000 Operating Income Before Depreciation 12,442 000 3,364.000 4,365.000 4.854.000 4,931.000 Depreciation, Depletion, & Amortiz 4,061 000 332.000 854.000 $28.000 744.000 Operating Income After Depreciation 8,381.000 3.532.000 4,011.000 4.326.000 4,187.000 Interest Expense 273.000 609.000 312.000 242.000 Non-Operating Income Expense 580 000 306.000 61.000 -620.000 -1,112.000 Special Items 2,502 004 196.000 -467.000 -381.000 -310.000 Pretax Income 4,732 000 3,761.000 3,276.000 3.013.000 2,523.000 Income Taxes - Total 178 000 1,095.000 750.000 2.314.000 629.000 Minority Interest .000 Income Before EL& DO 4,354 000 2,666.000 2,526.000 5.327.000 1,894.000 Extraordinary Items .DOO Discontinued Operations -170.000 Net Income (Loss) 4.354 000 2,496.000 2,526.000 $.327.000 1,194.000 Income Before EL& DO 4,354 000 2,666.000 2,526.000 5.327.000 1,194.000 Preferred Dividends Available for Common Before EL&DO 4,554 000 1 606 .000 2,526.000 5.327.000 1,194.000 Common Stock Equivalents - Savings .000 Adjusted Available for Common 4,354 00 2,666.000 2,526.000 5,327.000 1,894.000 EARNINGS PER SHARE EP'S - Primary, Excluding FI&DO 2510 1.540 1.500 3.300 2.080 EPS - Primary, Including EI&DO 2 510 1.440 1.500 3.300 2.080 EP'S - Fully Diluted, Excluding El&DO 2.480 1.530 1.480 3.260 2.070 EPS - Fully Diluted, Including EIADD 2 480 1.430 1.480 3.260 2.070 COMMON SHARES Common Shares for Primary EPS Calculation 1,814 000 1,730.000 1,685.000 1,615.000 1,515.000 Common Shares for Fully Diluted EPS Calc. 1,836 000 1,743.000 1,702.000 1,634.000 1,524.000 Common Shares Outstanding at Fiscal Yr 1,803 719 1,712.091 1,649.580 1,560.270 1,457.719Common Shares for Primary EPS Calculation 1,814 000 1,730.000 1,685.000 1.615.000 1,515.000 Common Shares for Fully Diluted EPS Calc. 1,836 000 1,743.000 1, 702.000 1.634.000 1,324.000 Common Shares Outstanding at Fiscal YF Fad 1,803 719 1,712.091 1,649.580 1.560.270 1,457.719 STATEMENT OF RETAINED EARNINGS Fiscal Year: 2015 2016 2017 2018 2019 (FYR Ending) (310CT2015 ) (31OCT2016 ) (310CT2017 ) (310012018) (3IOCT2019 ) Retained Rearings - Beginning Balance 23,283 000 25 787.000 -4,936.000 -3.804.000 1,318.000 Net Income 4,354 000 2,496.000 2,526.000 5.327.000 3,152.000 Cash Dividends 1,250 000 358.000 894.000 899.000 270.000 Retained Earnings After Dividends 26,587 000 27,425.000 -3,304.000 624.000 164.000 Change - Foreign Currency Translation -70.000 -70.000 Adj. to Long-Term Marketable Securities 9.000 12.000 5.000 4:000 Other CMP Adu(Stock Splits Retirement) -5,394 000 -1,447.000 -1,430.000 -850.000 1,238.000 Non-Compustat Adjustments (Plug Calculation) 4,594 000 -30 914.000 1,000.000 -1.022.000 1,669.000 Retained Earnings - Ending Balance 25,787 000 4.936.000 3,804.000 -1,318.000 2,043.000 Retroactive Adjustments (Acct's Ches) 000 Retained Earnings - After Adjustments 25,787 000 4.936.000 3,804.000 -1.318.000 2,043.000 STATEMENT OF CASH FLOWS Plocal Year: 2015 2016 2017 2019 (FYR Ending) (310CT2015 ) (310012016 ) (310CT2017 ) (310 012018 ) (3IOCT2019) INDIRECT OPERATING ACTIVITIES Income Before Extraordinary Items 4,354 000 2 666.000 2,526.000 6.327.000 3,152.000 Depreciation and Amortizations 4.061 000 354.000 528.000 744.000 Extraordinary liems and Disc. Operations -170.000 Deferred Taxes 700 000 401.000 233.000 -3.653.000 OOO'EEL Equity in Net Loss (Famings) Sale of PPEq and Investments - Loss (Gain) Funds from Operations - Other 2,988 000 720.004 719.000 $26.000 Receivables - Decrease (Increase) 50T OOO 565.000 -453.000 491.000 761.000 Inventory - Decrease (Increase] 330 000 -291.000 -1,346.000 136.000 -68.00 Accounts'l' and Accrued Liabe - Inc(Dec) 31 000 928.000 2,161.000 1,429.000 -53.000 Income Taxes - Accrued - Increase( Decrease) -137 000 106.000 389.000 -851.000 Other Assets and Liabilities - Net Change 4,484 000 1,645.000 596.000 416.000 1,532.000 Operating Actiities - Net Cash Flow 6,490 000 3.230.000 3,677.000 4.528.000 4,654.000 INVESTING ACTIVITIES Investments - Increase 259 000 126.000 1,919.000 367.000 30.000 Sale of Investments 302 000 133.000 $35.000 847.000 771.000 Short term Investments - Change .DOO Capital Expenditure 3,603 000 433.000 402 000 546.000 671.000 Sale of Property Plant and Equipment 424 000 6.000 69.00 172.000 Acquisitions 2,644 000 7.000 1.036.000 158.000 Investing Activities - Other 246 000 475.000 214.000 Investing Activites - Net Cash Flow 5,534 000 48.000 -1,717.000 -716.000 00O RET FINANCING ACTIVITIES Sale of Common and Preferred Stock 371000 48.000 57.000 $2.000 Purchase of Common and Preferred Stock 2,883 000 1,161.000 1,412.000 2.557.000 2,466.000 Cash Dividends 1,250 000 358.000 894.000 899.000 970.000 Long Term Debt - Issuance 20,758 000 4.000 5.000 127.000 Long Term Debt - Reduction 15,867 000 2,188.000 $4.000 2 098.000 630.000 Current Debt - Changes 74 000 97.000 1,086.000 -141.000 -$56.000 Financing Activities - Other 4 000 -10 371.000 9.000 Financing Activities - Net Cash Flow 1,344 000 -14,423.000 -1,251.000 5.643.000 4,845.000 Exchange Rate Effect .000 .OOL Cash and Cash Equivalents - Change 2,300 000 -11,145.000 709.000 -1,831.000 -629.000 OTHER INFORMATIONOther Assets and Liabilities - Net Change 4.484.000 -1,645.000 -596.000 416.000 1,532.000 Operating Actiities - Net Cash Flow 6,490 000 3.230.000 3,677.000 4.528.000 4,654.000 INVESTING ACTIVITIES Investments - Increase 259 000 126.000 1,919.000 367.000 30.000 Sale of Investments 307 CO0 133.000 535.000 847.000 771.000 Short tenn Investments - Change Capital Expenditures 3,603 0OO 433.000 402.000 546.000 671.000 Sale of Property Plant and Equipment 424 CO0 6.000 69.000 172.000 Acquisitions 2,644 000 7.00 1 036.000 458.000 Investing Activities - Other 246 000 475.000 ,000 214.000 Investing Activites - Net Cash Flow -5,534 000 48.000 -1,717.000 -716.000 00O'RET FINANCING ACTIVITIES Sale of Common and Preferred Stock 371 000 48.D00 57.000 52.000 Purchase of Common and Preferred Stock 2,883 000 1,161.000 1,412.000 2.557.000 2,466.000 Cash Dividends 1,250.000 358.000 894.000 899.000 970.000 Long Term Debt - Issuance 20,758 CO0 4.000 5.000 127.000 Long Term Debt - Reduction 15,867 000 2,188.000 $4.000 2 098.000 840.000 Current Debt - Changes 74 000 97.000 1,086.000 141.000 -856.000 Financing Activities - Other 4.000 10371.000 9.000 .000 Financing Activities - Net Cash Flow 1,344 0o0 14 423.000 -1,251.000 -5.643.000 -4,845.000 Exchange Rate Effect Cash and Cash Equivalents - Change 2,300 000 -11,145.000 709.000 -1,831.000 -629.000 OTHER INFORMATION Interest Paid - Nets 532 000 318.000 372.000 329.000 240.000 Income Taxes Paid 1,012 000 587.000 435.000 951.000 39.000