Gaston Company is considering a capital budgeting project that would require a $2,600,000 investment in equipment with a useful life of five years and no salvage value. The companys tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows:

Sales				$	3,300,000
Variable expenses					1,690,000
Contribution margin					1,610,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	710,000
Depreciation		520,000
Total fixed expenses					1,230,000
Net operating income				$	380,000

Required:

Compute the projects net present value. (Use Microsoft Excel to calculate present values, and do not round intermediate calculations. Enter cash outflows as negative numbers.)

NOTE: can you answer this questions in excel format.

Requirod: Compute the project's net present value. (Use Microsoft round intermodiate calculations. Enter cash outflows as negative numbers.) Excel to calculato prosent values, and do not Undiscounted Cash Flows: nual Cash Inflows Formula Inputs: NPER: PMT NPV Calculation: resent Value of Cash inflows Coat of Machine Net present value References Book& Resources