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I'm trying to setup an excel spreadsheet with the following inputs and came seem to hit the mark. Any help with setup? I have to

I'm trying to setup an excel spreadsheet with the following inputs and came seem to hit the mark. Any help with setup?

I have to determine the WACC and the cost of capital for a discounted cash flow with the following inputs:

Debt to Equity is 75%; Interest rate on the debt is 5.50%; Current Risk-Free Rate is .80%; Current Market Premium Rate is 7.25% and the the firms beta is 1.30

Project Considerations -

Project Investment Outlay, Year 0 - $700,000

Project Investment Life 7 years

Project Depreciation - $100,000 / year

Project Salvage Value - $55,000

Working Capital Base of Annual Sales 8%

Expected inflation rate per year, Selling Price Per Unit 2.00%

Expected inflation rate per year, Manufacturing Cost per unit 1.50%

Expected inflation rate per year, Fixed operating costs per year 1.50%

Project Tax Rate 20%

Units sold per year 40,000

Selling Price per Unit, Year 1 - $45.00

Fixed operating costs per year excluding depreciation - $75,000

Manufacturing costs per unit, Year 1 - $35.00

**I also have to do a sensitivity analysis based on the spreadsheet above to account for -

Worst Case Scenario = 20% decrease in sales units sold per year: 25% Probability

Base Case Scenario = 40,000 units sold per year: 55% Probability

Best Case Scenario = 20% increase in sales units sold per year: 20% Probability and show how does this risk analysis effect Net Present Value as supported by the calculations. Thanks!

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