Costel 1025 urits of product in 2021st an average price of $100.000 each based on current demand Mang Oceasts growth of 50 units per you through 2025 So the demand will be 1025 units in 2021. 1075 units 2170.000 price villemain consistent for five years of the investment lie. However, ABC cannot produce more 1000rs ay based on current capacity hode demand ABC must other update the current plant or replace it. the plant is replaced an initial working capital investment 15.000.000 is required and theto hunds will be released at the end of the investment life to be used elsewhere The lovingtable summaries the projected data for both options: Update Replace $10.000.000 investment in 2021 Terminals svage value in 2025 - Working capital investment required 11 Uselule Total anualcash operating costs per unit 5years 70.000 $ $ 5.000.000 5 years 60.000 20 21 The investment wil be made at the beginning of 2021 and all transactions after that are 22 tumed to occur on the last day of each yea. ABC's required tate of return is 14% 8 Required: (Please refer to the two Excel video lectures posted on Blackboard for Ch. 13 when setting up your spreadsheet for 25 guidance. You may set up your spreadsheet using this file (on a separate Excel worksheet) to address requirement #1, #2, and 83 and then answer question 14 directly on the spreadsheet. There are multiple ways to set up your spreadsheet and part of the exercise is each 30 student setting up his her own spreadsheet! 3 Using Excel functions (NPV and PU functions) and formular calculate the net present value NPV for both the update and replace alternatives. 52