CellTech is proposing the launch of its new Cphone 5. The Cphone 5 will cost $8 million to develop and produce cash flows of $3.5 million for three years. The release of the Cphone 5 is also expected to cannibalize sales of the Cphone 4 and reduce the cash flows from Cphone 4 by $1 million for the next two years. If CellTechs cost of capital is 12.7%, should it go ahead with the Cphone 5? Answer: No, the Cphone 5 has an NPV of $-1,368,319.23

Please go into detail on how you did each step and try not to use excel. If you do use excel, detail the functions and how each step is worked for an upvote. Thanks.