MJ Company is considering investing in a machine to produce personalized golf balls. The company hired outside analysts to conduct a thorough analysis of the project's feasibility. Regardless of whether or not the golf ball production proceeds, the company must pay the analysts $$100,000.$

Following are the analysis for the proposed new product:

The golf balls would be manufactured in a building owned by the firm that was already purchased couple years ago. The building can be sold for $$140,000$ after taxes.

Cost of new machine is $$150,000,$ which will be depreciated using $5-$year MACRS for tax purposes. The machine has an estimated market value at the end of five years of $$40,000.$

Production by year during the five$-$year life of the machine is expected to be : $60,000$ units, $80,000$ units, $100,000$ units, $120,000$ units, and $90,000$ units

The price of the personalized golf balls in the first year will be $$4$ per unit, and will increase at $2\%$ per year.

On the other hand, the cost to produce these golf balls in the first year will be $$2\mathrm{.}5$ per unit, and will increase at $8\%$ per year.

The project initially requires $$100,000$ of net working capital that will be fully recovered at the end of the project.

The corporate tax rate is $21\%.$

QUESTION #$1.$ What is the after$-$tax salvage value?

QUESTION #$2.$Create a spreadsheet in excel showing the formulas and answers that includes sales revenue, operating costs, depreciation, tax $(\mathrm{.}21),$ net income, and operating cash flow $($OCF$)$ for years $1$through $5.$

QUESTION #$3.$ create an excel spreadsheet showing the formulas and answers that include capital spending, opportunity costs, net working capital, and projected Total Cash Flow for years $1$ through $5.$

the Net Present Value of the project with the discount rate of $15\%$ is $$35,580$

QUESTION #$5.$ What is the Internal Rate of Return $($IRR$)$ for this project?