I haven't worked with excel for 10 years.This not found in my project management text, but is related to a simulation I'm working on. I need to find the solution to this problem:

D & J Plastics Financial Information

In addition to the commitment of labor costs of $380,000, expected capital equipment and related charges will be $500,000. The selling price of the newly developed plastic insert for the center console in a model line for a US auto manufacturer, in the first year is $1.00 per unit with a plan to reduce cost so that the selling price will be reduced 0.5% each year over the 5 year life of this product, e.g. $0.995 in year 2 etc. Expected units to be sold in the first year are projected to be 300,000. Sales growth is estimated to be 10% per year, e.g. 330,000 units in year 2 etc. Cost of goods sold will remain constant at 30% of sales. D & J Plastics requires a rate of return of at least 10% on all new projects. Projections are only valid for the first 5 years of sales, before a replacement product will take its place.

Simulation Experiential Exercise 2-4: Project Financial Assessment

Purpose

To determine the payback period and NPV of the project.

Instructions

Using the sales and cost data provided, identify the costs and cashflows of your simulated project over the life of the project. Calculate the payback period and NPV of the project. Is this an acceptable project? What are the financial criteria for determining feasibility? What are some of the nonfinancial considerations that D & J plastics should use the project selection process.

Deliverable

Costs, cash flow, payback, and NPV calculation. Includes a paragraph describing project feasibility.