Excel Activity; tssues in Capital thedoeting Start with the partial model in the file Ch1.3 P18 Build a Model.xdsx. Webmasters.com has developed a powerful new server that would be used for corporations' Internet activities, It would cost $13 milion at Year 0 to buy the equipment necessary to manufacture the server. The project would requere net workng capital at the beginning of each year in an amount equal to 9% of the year's projocted sales; for example, NwC =9%(5ale51). The servers would sell for $25,500 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1 , the sales price and variable costs will increase at the inflation rate of 4%. Ihe company's nonvariable costs would be $2 million at Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the preject's returns are expected to he highty correlated with returns on the firm's other assets. The firm believes it could sell 900 units per yeac: The equipment would be depreciated over a 5 -year period, using MACRS rates. The estimated market value of the equipment at the end of the project's 4 year Me +s 5600,000 . Webmasters.com's federal-plus-state tax rate is 25%. Its cost of capital is 12% for average-risk projects, delined as projects with a coeficient of variation of WPPV between 0.7 and 1.3. Low-risk projects are evaluated with a 9% project cost of capital and high-risk projects at 15%. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions bekiw. Do not round ntermediate calculations. a.. Develop a spreadsheet model, and use it to find the project's NPV, IRR, and payback. Round your answer for the Nev to the nearest dollar and for the the and payback to two decimal places. NPS tRR % Regular payback period years: a. Develop a spreadshect model, and use it to find the project's NiN, IRR, and payback, Round your answer for the MpV to the nearest dollar and for ithe tell aruf parback to two docmal places. b. Now conduct a sensitivity analysis to determine the sencitivity of NPV to changes in the sales price, variable costs per unit, and number of units sole set ifinvariables' values at 10% and 20% above and below their base case values. Round your answers to the nearest dollar. Use a manus sign to enter a negative uufue. if any. A. c. D. Semuitivity Analyus c. Now conduct a scenario analysic. Assume that there is a 25% probability that best-case conditions, with each of the variables incussed in Bart b being 20% better than its base case value, will occur. There is a 25% probability of worst-case conditions, with the variables 20% norse than base, and a so\%s probabilty af base-case conditions. Round your answers for the NPV and standard deviation to the nearest dollar and for the coeflicient of variabion to two decimat placeis. Use a minus sign to enter a negative value, if any. d. If the project appears to be thore or less risky than an average project, find its risk-adjusted Npy, 1Ra, and payback. Round your anvwer for the NPN to the: nearest dollar and for the IRR and payback to two decimal places. Use a minus sign to enter a negative value, if any. Excel Activity; tssues in Capital thedoeting Start with the partial model in the file Ch1.3 P18 Build a Model.xdsx. Webmasters.com has developed a powerful new server that would be used for corporations' Internet activities, It would cost $13 milion at Year 0 to buy the equipment necessary to manufacture the server. The project would requere net workng capital at the beginning of each year in an amount equal to 9% of the year's projocted sales; for example, NwC =9%(5ale51). The servers would sell for $25,500 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1 , the sales price and variable costs will increase at the inflation rate of 4%. Ihe company's nonvariable costs would be $2 million at Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the preject's returns are expected to he highty correlated with returns on the firm's other assets. The firm believes it could sell 900 units per yeac: The equipment would be depreciated over a 5 -year period, using MACRS rates. The estimated market value of the equipment at the end of the project's 4 year Me +s 5600,000 . Webmasters.com's federal-plus-state tax rate is 25%. Its cost of capital is 12% for average-risk projects, delined as projects with a coeficient of variation of WPPV between 0.7 and 1.3. Low-risk projects are evaluated with a 9% project cost of capital and high-risk projects at 15%. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions bekiw. Do not round ntermediate calculations. a.. Develop a spreadsheet model, and use it to find the project's NPV, IRR, and payback. Round your answer for the Nev to the nearest dollar and for the the and payback to two decimal places. NPS tRR % Regular payback period years: a. Develop a spreadshect model, and use it to find the project's NiN, IRR, and payback, Round your answer for the MpV to the nearest dollar and for ithe tell aruf parback to two docmal places. b. Now conduct a sensitivity analysis to determine the sencitivity of NPV to changes in the sales price, variable costs per unit, and number of units sole set ifinvariables' values at 10% and 20% above and below their base case values. Round your answers to the nearest dollar. Use a manus sign to enter a negative uufue. if any. A. c. D. Semuitivity Analyus c. Now conduct a scenario analysic. Assume that there is a 25% probability that best-case conditions, with each of the variables incussed in Bart b being 20% better than its base case value, will occur. There is a 25% probability of worst-case conditions, with the variables 20% norse than base, and a so\%s probabilty af base-case conditions. Round your answers for the NPV and standard deviation to the nearest dollar and for the coeflicient of variabion to two decimat placeis. Use a minus sign to enter a negative value, if any. d. If the project appears to be thore or less risky than an average project, find its risk-adjusted Npy, 1Ra, and payback. Round your anvwer for the NPN to the: nearest dollar and for the IRR and payback to two decimal places. Use a minus sign to enter a negative value, if any