Create an Excel worksheet to forecast the cash flows of a proposed project leading to calculating its NPV result. The proposed project is The Baldwin Company. The goal is to have a systematic approach to forecast cash flows and also provide users the flexibility to modify key inputs* to quickly get the NPV results under different scenarios. Key inputs include:

1. Units sold for each year of the project

2. Price per unit for Year 1

3. Price increase percentage per year (assume the same for all years)

4. Unit production cost for Year 1

5. Unit production cost increase percentage per year (assume the same for all years)

6. NWC to start project

7. NWC for subsequent years as a percentage of Sales (assume the same for all years)

8. Cost of warehouse

9. Cost of machine

10. Depreciation rate for each year of the project

11. Salvage value of machine (pre-tax)

12. Tax rate (assume the same for all years)

13. Discount rate (assume the same for all years)

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The Baldwin Company Info

Costs of test marketing (already spent): $250,000 Current market value of proposed factory site (which we own): $150,000 The proposed factory site is expected to be worth $150,000 at the end of the project Cost of bowling ball machine: $100,000 (depreciated according to MACRS 5-year) Bowling ball machine's salvage value: $30,000 Increase in net working capital in year 0: $10,000 Net working capital at end of each year is 10% of sales Production (in units) by year during 5-year life of the machine: 5,000,8,000,12,000,10,000,6,000 Price during first year is $20; price increases 2% per year thereafter. Production costs during first year are $10 per unit and increase 10% per year thereafter. Annual inflation rate: 5% Discount rate: 10% Tax rate is 34%