Khoury Home Appliances is a Family-owned midsized home appliance retailer located in Beirut, Lebanon. When it was founded over 30 years ago, the company originally repaired radios and other household appliances. You, as a recent MS graduate, have been hired by the companys finance department. One of the most popular items they assemble and sell is the Smart Refrigerators. Khoury Home Appliances currently has one model on the market, and sales have been excellent. The fridge is a unique item in that it comes in a variety of tropical colors and is preprogrammed to weather changes updates. However, as with any electronic item, technology changes rapidly, and the current refrigerator has limited features in comparison with newer models. Khoury Home Appliances spent $250,000 to research about a new refrigerator that has all the features of the existing fridge but adds new features such as content search capability. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new TV. Khoury Home Appliances can get the new fridges for $765 each in variable costs. Fixed costs for the operation are estimated to run $700,000 per year. The estimated sales volume is 4,000, 5,000, 7,500, 10,500, and 8,000 per each year for the next five years, respectively. The unit price of the new fridges will be $1,060. The necessary equipment to assemble can be purchased for $1.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $385,000. As previously stated, Khoury Home Appliances currently assembles and sells a fridge. Sales of the existing model is expected to be terminated in two years. If Khoury Home Appliances does not introduce the new fridge, sales will be 8,000 units and 6,000 units for the next two years, respectively. The price of the existing fridge is $790 per unit, with variable costs of $420 each and fixed costs of $1,800,000 per year. If Khoury Home Appliances does introduce the new TV, sales of the existing fridge will fall by 1,500 units per year, and the price of the existing units will have to be lowered to $495 each. Net working capital for the fridges will be 20 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC, but changes in NWC will first occur in year 1 with the first years sales. Khoury Home Appliances has a 35 percent corporate tax rate and a 12 percent required return. Show calculations in excel