Excel formulas too please.

C. Calculate the Operating Cash Flows for years 1 to 5 Case Study Information Stankus-Wolf Electronics is a midsized electronics manufacturer located in Tampa, Florida. The company president is Alison Lyons, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Derek Rigsby, a recent MBA graduate, has been hired by the company in its finance department. One of the major revenue-producing items manufactured by Stankus-Wolf Electronics is a smartphone. Stankus-Wolf Electronics currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of vibrant colors and is preprogrammed to play Taylor Swift music. However, a \\( \\frac{1}{5} \\) with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models. Stankus-Wolf Electronics spent \\( \\$ 1.8 \\) million to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as Wifi tethering. The company also spent \\( \\$ 355,000 \\) for a marketing study to determine the expected sales figures for the new smartphone. Stankus-Wolf Electronics can manufacture the new smartphone for \\( \\$ 375 \\) each in variable costs. Fixed costs for the operation are estimated to run \\( \\$ 6.8 \\) milion per year. The estimated sales volumes are \\( 73,200,86,200,105,250,97,300 \\), and 67,400 per year for each of the next five years, respectively. The unit price of the new smartphone will be \\( \\$ 855 \\). The necessary equipment can be purchased for \\( \\$ 42.75 \\) million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be \\( \\$ \\$ .8 \\) million. Net working capital (\"NWC\") for the smartphone will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e. there is no initial outlay for the NWC). Changes in NWC thus will occur in Year 1 with the first year's sales. Stankus-Wolf Electronics has a 22 percent corporate tax rate and a required return of 12 percent. Alison has asked Derek to prepare a report that answers the following questions: 1. What is the payback period of the project? 2. What is the profitability index of the project? 3. What is the IAR of the project? 4. What is the NPV of the project? 5. How sensitive isthe NPV to changes in the price of the new smartphone? Assume a new sales price of \\( \\$ 900 \\). 6. How sensitive is the NPV to changes in the quantity sold (Assume units sold increases by 100 units per vear)? 7. Should Stankus-Wolf Electronics produce the new smartphone? 8. Suppose Stankus-Woif Electronics loses sales on other models because of the introduction of the new model. How would this affect your analysis? e A B C D E 1. 6. How sensitive is the NPV to changes in the quantity sold? Assume an increase of 100 units per year for your analysis. \\begin{tabular}{c|l} \\hline 3 & \\\\ \\hline 4 & \\\\ 5 & Sales \\\\ 6 & VC \\\\ \\hline 7 & Fixed costs \\\\ 8 & Depreciation \\\\ 9 & EBT \\\\ 10 & Tax \\\\ \\hline 11 & NI \\\\ 12 & + Depreciation \\end{tabular} 13 Operating Cash Flow 14 15 Beginning NWC 16 Ending NWC 17 NWC Cash Flow 18 19 Net CF for sale of equipment 21 Cash Flows for Project: 23 24 25 26 27 Year 1 Year 2 Year 3 Year 4 Year 5 28 29 \\( 30 \\mathrm{NPV} \\) with additional 100 units/yr 31 Sensitivity of changes in units: 32