Company is considering launching a product line extension. Here are the key estimates and assumptions associated with the project:

Project life (in years): 4

Initial cost of equipment: $2,300,000

Initial increase in inventory: $50,000

Initial increase in accounts receivable: $120,000

Initial increase in accounts payable: $30,000

Gross sales from the new product line in Year 1: $1,500,000

Initial units sold in Year 1: 500,000

Initial sales price per unit: $3

Gross sales increase after Year 1 (per year due to increased Units & Inflation): 7%

Operating costs excluding cost of launching (as a percent of gross sales): 25%

Launch costs in Year 1: $75,000

Market research cost prior to the start of the project: $60,000

Inflation estimate per year (impacts sales and costs): 3%

Weighted average cost of capital: 12%

Marginal corporate income tax rate: 35%

Net working capital will be 10% of sales starting in Year 1.

The new equipment is depreciated on a straight line basis over the life of the project.

The new equipment is estimated to have a salvage value of $150,000 in 4 years.

It is estimated that the new product will result in cannibalization of existing sales by an amount of $75,000 per year.

I created a spreadsheet to model the case scenario and calculate the Payback, NPV, IRR, MIRR, and PI but I'm not sure that I did it correctly and would like to check my work.

I also need to determine whether Economic Value Added (EVA) and ROIC metrics are appropriate in this case and, if they are, create them but I am not sure how to approach that. Ultimately, I am trying to assess whether the project is feasible; and why or why not.