COPY AND PASTE THE FOLLOWING CAPITAL BUDGETING QUESTION INTO A WORKSHEET AND ANSWER USING EXCEL. SHOW ALL YOUR WORK INCLUDING UNDERLYING FORMULAS.

Chevron Corporation has a new project with the following specifications: Project life time is 5 years. Price of the product is set to be $15 in the first year and expected to increase 10% every year. Cost per unit is $8 and expected to increase by 4% a year. There will be 50,000 units of production in the first year and expected to increase by 5% over the years. Initial investment requirement $750,000 and salvage value is $180,000. Depreciation methodology is straight line. NWC is expected to be $200,000 at time 0 and will increase by 15% every year, and the final amount of NWC will be recovered in the last period. Tax rate is 30%. Discount rate (WACC) is 14% for the project.

Find NPV, IRR, MIRR, and PI and decide if Chevron should accept this project. Show all your work in Excel.