Excel Sheet

RWE Enterprise: Expansion project Analysis RWE Enterprises, Inc. (RWE) is a small manufacturing firm located in the hills of Nasshville, TN. The firm is engaged in the manufatcure and sale of beef supplements used by cattle raisers. The product has a mollasses base but is suplemented with minerals and vitamins that are generally thought to be essential to the health and growth of beef cattle. The final product is put in 125-pound or 200-pound tubs that are then made available for cattle to lick as desired. The material in the tub becomes very hard, which limits the animals' consumption. The firm has been running a single production line for the past five years and is considering the addition of a new line. The addition would expand the firms' capacity by almost 120% since the newer equipment requires a shorter down time between batches. After each production run the boiler used to prepare the molasses for the addition of minerals and vitamins must be heated to 180 degrees Fahranheit and then must be cooled down before beginning the next batch. The total production run entails about 4 hours and the cool down period is 2 hours (during which time the whole process comes to halt). Using two production lines increases the overall efficiency of the operation since workers from the line that is cooling down can be moved to the other line to support the "canning" process involved in filling the feed tubs. a. If RWE uses a 10% discount rate to evaluate investments of this type, what is the net present value of the project? What does this NPV indicate about the potential RWE might create by purchasing new production line? b. Calculate the internal rate of return and profitability index for the proposed investment. What do these two measures tell you about the projects viability? c. Calculate the payback and discount payback for the proposed interpret your findings. *all calculations should be done on excel spread sheet. Guidelines: 1. Submitted paper must consist of an Excel sheet (including all calculations), and an essay part (Analysis and conclusion). 2. The essay must consist of an introduction, analysis, conclusion and the references