Do the work in excelDo the work in excel and show some cells

for significant calculationsBuilding the proposed $50$ basketball courts will require an investment of $$20,000$ per court for

paving, fencing, lighting, etc. The courts will be depreciated on a straight$-$line basis to a net book

value of $$0.$ Basketti has received special approval to depreciate the courts as personal property over

a $7-$year life, rather than having to depreciate them as land improvements, which would require a

$15-$year life. The investment in an inventory of paddles, nets, and balls $-$ both for sale and for

customers to borrow $-$ is expected to cost $$362,000.$ The increase in Accounts Receivable is

expected to be $$210,000,$ and in Accounts Payable $$145,000.$ To partially finance the project, the

company will issue Long$-$Term Debt of $$750,000.$

First year operating results are expected as follows: Sales $$784,000,$ Costs of Goods Sold $($COGS$)$

expense $$522,000,$ and Selling, General and Administrative $($SG&A$)$ expense $$115,000.$ Sales are

expected to grow $5\mathrm{.}0\%$ per year, and both COGS and SG&A are expected to remain at a constant

percentage of Sales. Pickleheads pays a combined federal and state tax rate of $22\mathrm{.}0\%.$

Basketti hopes to sell the courts and equipment to the mall owners for a total salvage value of

$$300,000$ at the end of the project's five$-$year life. At that time, all Current Asset and Current Liability

accounts will return to their pre$-$project levels.

Basketti requires a return of $12\mathrm{.}0\%$ on capital projects. It has $1,000,000$ shares outstanding.

Prepare an analysis to determine whether the firm should implement this capital project. Your

analysis should provide answers to each of the following questions.

What is the project's initial investment requirement $($the cash flow at the end of year zero$)?$

What are the operating cash flows $($the operating cash flows at the ends of years $1$ through $5)?$

What is the total terminal cash flow $($the non$-$operating cash flow at the end of year $5)?$

What is the NPV$?$

What is the IRR?

Should the firm implement the project? Why or why not? Answer this question twice: first,

using the results of your NPV calculation, and second, using the results of your IRR calculation.

How much does the project earn? Answer this question twice, first, using the results of your

NPV calculation, and second, using the results of your IRR calculation.