I'm not sure if I'm doing this problem correctly This is the scenario. This is the table provided by the professor. I had to calculate the NPV, IRR and PI and those are my numbers in the spreadsheet but I'm not sure if they're correct. How would I go about answering the scenario questions correctly on the spreadsheet?

@Home | Capella Univers i Announcements - MBA Assessment 2 Instri X Home | Capella Univers 5 Home - MBA-FPX5014 My Courses Home Capella: Corporate Fina + O X A https://courserooma.capella.edu/webapps/blackboar tent/listContent.jsp?course_id=_215612_1&content_id=_8204589_1 HLEG . . To see favorites here, select = then #, and drag to the Favorites Bar folder. Or import from another browser. Import favorites MBA Program Resources Scenario MBA Academic Support You work as a finance manager for Drill Tech, Inc., a mid-sized manufacturing company located in Courseroom Help Minnesota. Three capital project requests were identified as potential projects for the company to pursue in the upcoming fiscal year. In the meeting to discuss capital projects, the director of finance (and your boss), ePortfolio Jennifer Davidson, gives you a synopsis of the projects along with this question: Which one of these projects SafeAssign will provide the most shareholder value to the company? Capella Facebook Community She also tells you that other than what is noted in each project scenario, all other costs will remain constant, and you should remember to only evaluate the incremental changes to cash flows. The proposed projects for you to review are as follows. Project A: Major Equipment Purchase A new major equipment purchase, which will cost $10 million; however, it is projected to reduce cost of sales by 5% per year for 8 years. The equipment is projected to be sold for salvage value estimated to be $500,000 at the end of year 8. Being a relatively safe investment, the required rate of return of the project is 8%. The equipment will be depreciated at a MACRS 7-year schedule. Annual sales for year 1 are projected at $20 million and should stay the same per year for 8 years. Before this project, cost of sales has been 60%. . The marginal corporate tax rate is presumed to be 25%. Project B: Expansion into Europe Expansion into Western Europe has a forecast to increase sales/revenues and cost of sales by 10% per year for 5 years. . Annual sales for the previous year were $20 million. . Start-up costs are projected to be $7 million and an upfront needed investment in net working capital of $1 million. The working capital amount will be recouped at the end of year 5. Because of the higher European tax rate, the marginal corporate tax rate is presumed to be 30%. O Type here to search e a 3 - 6# 136 PM 12/3/2019*MBA5014-Capital-Budgeting-for x MBA5014-Capital-Budgeting-for C onedrive.live.com/edit.aspx?cid=2dd1b2578fd845e28page=view&residDigFD845E2!130&parld=2DD1B2578FD845E2!103&app=Excel 1 ! @ w. Q Excel OneDrive MBA5014-Capital-Budgeting-for-Drill-Tech For Students - Saved Bad Butts Sign out File Home Insert Data Review View Help Tell me what you want to do Open in Desktop App Share Comments X Cut Calibri 11 ~ A" A = = = 29 Wrap Text AutoSum ~ Z O Paste Ca Copy BIU DaBA BEE Merge & Center ~ $ ~ % 9 68 98 Conditional Forma Insert Delete Format Formatting . as Table Clear Sort & Find & Format Painter Filter . Select Ideas Ideas Undo Clipboard Font Alignment Number Tables Cells Editing A27 fx Net cash flows D F G H M N Major Equipment Purchase Year O Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Sales 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 Cost of Sales 11,400,000 11,400,000 11,400,000 1,400,000 11,400,000 11,400,000 11,400,000 11,400,000 MACRS 7 Schedule 14.29% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% 10 Depreciation 1,429,000 2,449,000 1,749,000 1,249,000 393,000 892,000 893,000 146,00 11 Earnings before taxes ,171,000 6,151,000 6,851,000 7,351,000 7,707,000 ,708,000 7,707,000 8,154,000 12 Income taxes ,792,750 1,537,750 1,712,750 1,837,750 1,926,750 5,780,250 1,927,000 Net income 5,513,250 5,781,000 1,926,750 2,038,50 5,378 ,250 4,613,250 5,138,250 5,780,25 115,50 14 Add depreciation 1,429,000 2,449,000 1,749,000 1,249,000 893,000 392,00 0O'E6 446,000 15 Operating cash flows 5,807,250 7,062,250 6,887,250 6,762,250 5,673,250 6,673,000 5,673,250 5,561,500 16 Initial investment -10,000,000 375,000 17 Net cash flows -10,000,000 6,807,250 7,062,250 6,887,250 6,762,250 6,673,250 6,673,000 6,673,250 6,936,500 18 19 NPV 20 29,183,703.2 67.55% 21 3.92 22 23 B. Expansion into Europe 25 Cash Flows for Students Major Equipment Purchase Europe Expansion Marketing Campaign Help Improve Office Saved to OneDrive 1:39 PM OType here to search 12/3/2019