Diltz Farms is considering investing in an automated egg-sorting system to increase production for international (web-based) sales of Diltz Farms' products. The new system will cost $3005 including installation. It will be fully depreciated in 5 yrs.(straight-line) to zero and generate $235 after-tax gain at the end of the projected period (year 6 ). The initial working captital will be $225 and will be $580 in year one and increase each year thereafter by 5 percent.Assume that at year 0 , there is no change in working capital. Revenues generated from the egg-sorter are expected to be $905 in year one, and increase by five percent each year. Expenses are ten percent of revenues. Diltz Farms' cost of capital is 7.3%. Using the discounted cash-flow analysis, should Diltz Farms invest in the machinery? What is the NPV of the egg-sorter project? Asume Tax rate as 35% C17,C19,C20 and C21. the end of its life iet at the end of its useful life, we enreciation. In cell C23 enter: =C14 In cell 124 enter. =C19 In cell C25 enter the initial working capital from the problem In cell D25 enter the working capital for year 1 from the problem In cell E25 enter : =1.05D25 and then drag it till H25 In cell C26 enter 0 In cell D26 enter: = D25-C25 and then drag it till I26 In cell D27 enter the revenue for year 1 from the problem In cell E27 enter. = D27 1.05 and then drag it till H27 In cell D28 enter. =D270.1 In cell E28 enter. = D2 81.05 and then drag it till H28 In cell D29 enter. =$C$18 and then drag it till H29 In cell D30 enter. = D27-D28-D29 and then drag it till H30 In cell D31 enter. =$C$21D30 and then drag it till H31 In cell D32 enter. = D30-D31 and then drag it till H32 In cell C34 enter. =C23 In cell C35 enter. =C26 and drag it till H35 In cell I35 enter. =I26+I24 In cell D36 enter. = D32+D29 and drag it till H36 In cell C 37 enter. = sum (C34,C35,C36) and drag it till I37 In cell C38 enter. =1/(1+$C$20)C22 and then drag it till I38 In cell C39 enter. =C37C38 and then drag it till I39 In cell C42 enter: =sum(C39:I39) In cell C43 find IRR using only the formula (only use the formula but do not use GoalSeek function. You learnt those in Chapter 9 Spreadsheet Mastery). Hint: Use IRR formula for Total Cash Flows Problem 2: Depreciation Table end-of-the-year book values for this machine? the beginning In cell B67 enter the cost of the machine In cell D67 enter. =C67$B$67 and drag it down till D74 In cell E67 enter: = B67-D67 and then drag it down till E74 In cell B68 enter. = E67 and drag it till B74 Only if all the cells in the depreciation table are correct you would get full points, otherwise zero. There are no partial points for this table