IBLIINlI IDDOHU'UI 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3D 31 32 33 34 35 36 37 38 39 4D 41 42 43 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 65 66 XVZ, Inc. is considering a 5-year project. The production will require net working capital investments each year equal to 15% of the projected sales . Total fixed costs are $1,350,000 per year, variable production costs are $210 per unit, and the units are priced at $345 each. The equipment needed to begin production has an intalled cost of $23,000,000. The equipment is qualied as seven-year MACRS property. The company is in the 35% marginal tax bracket and has a required rate of return on all its projects of 18%. Salvage value will be the same as the bookvalue at the end of year 5. Please nish the project valuation and answer the following questions. All the colored cells need to be lled in. Input Area Year 1 Projecte- unit 80,000 85,000 90,000 95,000 95, 000 sales MACRS Rates 14.29% 24.49% 17.49% 12.49% 8. 93% 8.92% _ NWC/year (96 of projected sales ) _ Fixed costs 8. 93% 4. 46% Variable cost per unit Unit price Equipment cost, year 0 Tax Rate Required return 1 Please complete the cash flow estimation table What are the projected cash flows for each year? (5 points) \\1 no IN IN lb |U1 - _ Year _ding book value Depreciation Depreciation (Accu m) Sales Variable costs Fixed costs Depreciation EBIT NOPAT Change in NWC CAPEX Salvage value Total cash flow Taxes Net' Income 2. What is the NW and IRR for this project? Shall the project be accepted? Why? (2 points) Type your answer here: % Change 4. Using the following table and Excel scenario manager function to conduct a scenario analysis. In this analysis, please cover worst, expected, and best scenario. Please make sure to change the cell references in the scenario summary table to proper variable names so your results are understandable. (2 points) Expected Value Minimum Maximum Variablecost _m Unit Price Tax Rate scenario either. - Please note: minimum doesn't mean worst - scenario, and maximum doesn't mean best