MUST SHOW CORRECT EXCEL FORMULAS. ONLY ANSWER HIGHLIGHTED PORTIONS.

XUR 5 + Calculating NPV - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign in Calibri 11 - A A 23 Paste BIU E! - A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font . A1 fx A B C D E F G H 1 2 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year O net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 4 5 6 7 8 9 Asset investment $ Estimated annual sales $ Costs Net working capital $ Pretax salvage value $ Tax rate Project and asset life Required return 2,900,000 2,190,000 815,000 300,000 210,000 21% 3 12% 10 11 12 13 14 15 Calibri 11 Paste BIU Cells Editing AM % Alignment Number Conditional Format as Cell Formatting Table Styles Styles fx Clipboard Font A1 . D E F H 16 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to calculate the NPV. 17 18 19 Aftertax salvage value Sell equipment Taxes Aftertax cash flow 20 21 22 23 24 25 26 27 28 Sales Costs Depreciation EBT Taxes Net income 29 Capital spending Net working capital OCF Net cash flow 30 31 32 33 34 35 36 37 NPV Sheet1 READY 100%