Davis Printer Inc. is a midsized printer manufacturer. The company president is Sherry Davis, who inherited the company. When it was founded over 50 years ago, the company originally repaired printers and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacture of various printers and cartridges. Jason Smith, a recent finance graduate, has been hired as a financial analyst by the company's finance department. One of the major revenue-producing items manufactured by Davis Printer is a color printer. Davis Printer currently has one multi-function color printer model on the market, and sales have been excellent. However, as with any electronic item, technology changes rapidly, and the current color printer has limited features in comparison with newer models. Davis Printer has spent $200,000 for a marketing study to determine the expected sales figures for the new color printer. Assignment 1: Direct Cash Flow Analysis Suppose that you are Jason Smith and you have been asked by Sherry Davis, the president of the company, to create an Excel model with a direct cash flow forecast for the new multi-function color printer. After you estimate the incremental cash flows from the new color printer, calculate the NPV of the project. Assumptions: 1. Development cycle (design and engineering of the new multi-function color printer before going to market) 1-year development cycle Investment in equipment: $40 million Investment Timing: 60% of the investment in equipment is invested now (time 0 or at the beginning of year 1) and the other 40% will be invested at the beginning of year 2