If you can explain how to get the answers using excel formulas

Webmasters.com has developed a powerful new server that would be used for corporations Internet activities. It would cost $10 million to buy the equipment necessary to manufacture the server, and it would require net working capital equal to 10% of sales. The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After the first year, the sales price and variable costs would increase at the inflation rate of 3%. The company's fixed costs would be $1 million per year, and would increase with inflation. It would take one year to buy the required equipment and set up operations, and the server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 1,000 units per year. The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project's 4-year life is $500,000. Webmasters' federal-plus-state tax rate is 40%. Its cost of capital is 10% for average risk projects, defined as projects with a coefficient of variation for NPV between 0.8 and 1.2. Low risk projects are evaluated with a WACC of 8%, and high risk projects at 13%. a. Develop a spreadsheet model and use it to find the project's NPV, IRR, and payback Part 1. Input Data (in thousands of dollars) Equipment cost Net Operating WC/sales First year sales (in units) Sales price per unit Variable cost per unit Fixed costs $10,000 10% 1,000 $24.00 $17.50 $1,000 Market value of equipment in 2006 Tax rate WACC Inflation $500 40% 10% 3.0% Years Part 2. Depreciation and Amortization Schedule Year Initial Cost Accum'd Depr'n Equipment Depr'n Rate Equipment Depr'n, Dollars Ending Bk Val: Cost - Accum Depirn 20.0% $2,000 32.0% $3,200 19.0% $1,900 10,000 12.0% $1,200 $1,700 $8,300 Part 3. Net Salvage Values, in Year 4 Estimated Market Value in Year 4 Book Value in Year 4 Expected Gain or Loss Taxes paid or tax credit Net cash flow from salvage Equipment $500 1,700 -1,200 -480 $980 Part 4. Projected Net Cash Flows (Time line of annual cash flows) Years Investment Outlays at Time Zero: Equipment (10,000) Operating Cash Flows over the Project's Life: Units sold Sales price Variable costs 1,000 $24.00 $17.50 1,000 $24.72 $18.03 1,000 $25.46 $18.57 1,000 $26.23 $19.12 Sales revenue Variable costs Fixed operating costs Depreciation (equipment) Oper. income before taxes (EBIT) Taxes on operating income (40%) Net Operating Profit After Taxes (NOPAT) Add back depreciation Operating cash flow $24,000 17,500 1,000 2,000 3,500 1,400 2,100 2,000 $4,100 $24,720 18,025 1,030 3,200 2,465 986 1,479 3,200 $4,679 $25,462 18,566 1,061 1,900 3,935 1,574 2,361 1,900 $4,261 $26,225 19,123 1,093 1,200 4,810 1,924 2,886 1,200 $4,086 Terminal Year Cash Flows: Required level of net operating working capital Required investment in NOWC $2,400 ($2,400) $2,472 ($72) $2,546 (974) $2,623 ($76) $2,623 Terminal Year Cash Flows: Net salvage value 980 Net Cash Flow (Time line of cash flows) ($12,400) $4,028 $4,605 $4,185 $7,689 Part 5. Key Output: Appraisal of the Proposed Project Net Present Value (at 10%) IRR MIRR $3,463 21.09% 16.99% b. Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables' values at 10% and 20% above and below their base case values. Include a graph in your analysis. Part 6. Evaluating Risk: Sensitivity Analysis different unit sales, holding other thing 1. Sensitivity of NPV to Changes in Inputs. Here we use an Excel "Data Table" to find NPV constant. WACC % Deviation from Base Case -20% -10% WACC 8.0% 1st YEAR UNIT SALES Units NPV Sold 800 900 1,000 1,100 1,200 % Deviation from Base Case -20% -10% 0% 10% 20% 9.0% 0% 10% 20% 10.0% 11.0% 12.0% NPV % Deviation from Base Case -20% -10% 0% 10% 20% VARIABLE COSTS Variable NPV Costs $14.00 $15.75 $17.50 $19.25 $21.00 % Deviation from Base Case -20% -10% 0% 10% 20% SALES PRICE Sales Price $19.20 $21.60 $24.00 $26.40 $28.80 FIXED COSTS Fixed Costs NPV $800 -% Deviation from Base Case -20% -10% 0% 10% 20% $900 $1,000 $1,100 $1,200 First, copy and paste NPVs from sensivitiy analysis table to the table below. Draw a line graph off from the table below. Note that there are only three variables to be shown in the tale below. Your Y-axis should be NPVs. Your X-axis should be "Deviations from Base value." . Webmasters.com has developed a powerful new server that would be used for corporations Internet activities. It would cost $10 million to buy the equipment necessary to manufacture the server, and it would require net working capital equal to 10% of sales. The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After the first year, the sales price and variable costs would increase at the inflation rate of 3%. The company's fixed costs would be $1 million per year, and would increase with inflation. It would take one year to buy the required equipment and set up operations, and the server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 1,000 units per year. The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project's 4-year life is $500,000. Webmasters' federal-plus-state tax rate is 40%. Its cost of capital is 10% for average risk projects, defined as projects with a coefficient of variation for NPV between 0.8 and 1.2. Low risk projects are evaluated with a WACC of 8%, and high risk projects at 13%. a. Develop a spreadsheet model and use it to find the project's NPV, IRR, and payback Part 1. Input Data (in thousands of dollars) Equipment cost Net Operating WC/sales First year sales (in units) Sales price per unit Variable cost per unit Fixed costs $10,000 10% 1,000 $24.00 $17.50 $1,000 Market value of equipment in 2006 Tax rate WACC Inflation $500 40% 10% 3.0% Years Part 2. Depreciation and Amortization Schedule Year Initial Cost Accum'd Depr'n Equipment Depr'n Rate Equipment Depr'n, Dollars Ending Bk Val: Cost - Accum Depirn 20.0% $2,000 32.0% $3,200 19.0% $1,900 10,000 12.0% $1,200 $1,700 $8,300 Part 3. Net Salvage Values, in Year 4 Estimated Market Value in Year 4 Book Value in Year 4 Expected Gain or Loss Taxes paid or tax credit Net cash flow from salvage Equipment $500 1,700 -1,200 -480 $980 Part 4. Projected Net Cash Flows (Time line of annual cash flows) Years Investment Outlays at Time Zero: Equipment (10,000) Operating Cash Flows over the Project's Life: Units sold Sales price Variable costs 1,000 $24.00 $17.50 1,000 $24.72 $18.03 1,000 $25.46 $18.57 1,000 $26.23 $19.12 Sales revenue Variable costs Fixed operating costs Depreciation (equipment) Oper. income before taxes (EBIT) Taxes on operating income (40%) Net Operating Profit After Taxes (NOPAT) Add back depreciation Operating cash flow $24,000 17,500 1,000 2,000 3,500 1,400 2,100 2,000 $4,100 $24,720 18,025 1,030 3,200 2,465 986 1,479 3,200 $4,679 $25,462 18,566 1,061 1,900 3,935 1,574 2,361 1,900 $4,261 $26,225 19,123 1,093 1,200 4,810 1,924 2,886 1,200 $4,086 Terminal Year Cash Flows: Required level of net operating working capital Required investment in NOWC $2,400 ($2,400) $2,472 ($72) $2,546 (974) $2,623 ($76) $2,623 Terminal Year Cash Flows: Net salvage value 980 Net Cash Flow (Time line of cash flows) ($12,400) $4,028 $4,605 $4,185 $7,689 Part 5. Key Output: Appraisal of the Proposed Project Net Present Value (at 10%) IRR MIRR $3,463 21.09% 16.99% b. Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables' values at 10% and 20% above and below their base case values. Include a graph in your analysis. Part 6. Evaluating Risk: Sensitivity Analysis different unit sales, holding other thing 1. Sensitivity of NPV to Changes in Inputs. Here we use an Excel "Data Table" to find NPV constant. WACC % Deviation from Base Case -20% -10% WACC 8.0% 1st YEAR UNIT SALES Units NPV Sold 800 900 1,000 1,100 1,200 % Deviation from Base Case -20% -10% 0% 10% 20% 9.0% 0% 10% 20% 10.0% 11.0% 12.0% NPV % Deviation from Base Case -20% -10% 0% 10% 20% VARIABLE COSTS Variable NPV Costs $14.00 $15.75 $17.50 $19.25 $21.00 % Deviation from Base Case -20% -10% 0% 10% 20% SALES PRICE Sales Price $19.20 $21.60 $24.00 $26.40 $28.80 FIXED COSTS Fixed Costs NPV $800 -% Deviation from Base Case -20% -10% 0% 10% 20% $900 $1,000 $1,100 $1,200 First, copy and paste NPVs from sensivitiy analysis table to the table below. Draw a line graph off from the table below. Note that there are only three variables to be shown in the tale below. Your Y-axis should be NPVs. Your X-axis should be "Deviations from Base value