excel please or table

A golf pro is considering purchase and installation of a new golf simulator for his off seasonbusiness. Consider the following:

1. The life of the project is 5 years.

2. The cost of the simulator is $100,000. It will cost an additional $5,000 to set it up in the pros facility.

3. The pro must also maintain a $500 inventory of spare mats and other parts while the system isoperating. Once the machine is sold at the end of 5 years, he will no longer maintain thisinventory.

4. The pro expects this new simulator to result in an increase in revenue every year of $2,000 aweek for the 25 weeks in the winter months (the off season).

5. If he buys the simulator the pro must also purchase technical support and on-line updating at acost of $1,000 per year.

6. Use of this simulator will reduce lighting expense in the shop by $100 per year.

7. The simulator will be depreciated on a 5 year MACRS basis. The depreciation percentages forthe 5 years, respectively, will be 20%, 32%, 19%, 12% and 11%.

8. The pro will put this simulator in the golf shop he purchased last year for $175,000.

9. At the end of the 5 years, the pro expects to be able to sell the simulator for $30,000.

10. The federal plus state tax rate is 40%. The capital gains tax rate is 15%.

11. The pro uses a WACC of 10% to evaluate projects.

A) Using Excel and Excel formulas, generate the incremental, after-tax cash flows and calculatethe NPV of this project. Make a recommendation whether the pro should or should not buy thesimulator.

B) If the WACC increases to 12%, should the pro still buy the simulator?

C) Conduct sensitivity analysis assuming the following changes in assumptions. Decide whetherthe project would still make financial sense, assuming WACC of 10% and 12%.

1) The simulator costs $120,000.

2) The cost to install the machine in the golf shop is $7,500.

3) Projected additional revenue is $1,500 per week for the 25 week winter season.

4) Pre-tax operating costs for technical support and on-line updating will be 15% higher than projected.

5) The company can sell the simulator for $20,000 at the end of 5 years.