How do we fill in the template and how do we do these questions related to it?

You work for a company that has the opportunity to expand production of an exisiting product line. Initial investment is $2m, and the project will deliver $350 k of free cash per year for ten years (This is based on assumption that sales of $1,000,000 cost $650,000 to deliver). To simplify (and reduce the work you need to do, please complete template one to show your working for questions 1 - 12 in yellow space., in approrpaite templates Answer each question alongside the question in the grey box, and alongside it state a any important ssumptions. We expect you to use standard financial formulas in excel wherever possible, displlay all doallrs without zeros, and indicate negative numbers in red (in brackets). If you are unsure check the excel tutorials. TEMPLATE ONE (for questions 1 - 7) Year Q3 Year Dollars 0 Year Q1. Year Dollars 0 1 Q4. Dollars 0 Q2. Year Dollars 0 1 Year Q5. Dollars 0 Cumulative Q7 Year Dollars 0 1 2 1 1 1 2 2 2 3 3 3 4 4 Q6 Dollars 0 1 2 3 4 5 6 7 8 4 2 3 4 5 6 7 8 19 20 5 2 3 4 5 6 7 8 9 10 5 5 6 6 7 8 9 6 7 8 PV 7 8 9 9 9 9 10 10 10 10 10 NPV Questions 1 - 7 Assumptions: Equipment worth zero after ten years, No sales after ten years. Q1. If you can borrow money from the bank at 10% should you go ahead with the project? (Is NPV +ve) Answer Assumptions - if any Q2. If the interest rate drops to 6%- does this change your decision? Q3. If the interest rate increases to 12% does this change your decision? Q4. If all customers prepay $350,000 for year 1 only, does this change your decision (interest rate still at 12%)? Q5. Company board wants to know the Internal Rate of Retrun on the project (no prepayment)? Q6. What is the payback (in years) on the project? Q7. Product demand continues for 20 years. What is annuity value from cash flow (Use PV, interest = 12%)