Need Help in understanding the attached Practice Question. Step by step instructions to help me grasp the theory will be most helpful, many Thanks!

look6 - Excel Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do do Cut EB Copy 2b Wrap Text General Bad Format Painter Merge & Center - $ - % Conditional Format as Check Cell Formatting - Table Explanatory .. Clipboard Alignment Number It is the end of 2018 and you recently started working for the Coca-cola Company as a senior project analyst. Senior management has been discussing a limited production run of Crystal Clear Coke as a novelty drink to boost sales temporarily. Crystal Coke would be marketed and sold for 3 years starting in 2019. However, there is some concern that producing and marketing Crystal Clear Coke will canibalize sales from regular Coke. You've been tasked with completing an anlysis to determine if going forward with Crystal Clear Coke makes sense financially. You've been given the information below. New equipment will have to be purchased immediately, totalling $1,250,000. The new equipment will be depreciated on a straightline basis over 10 years, but will NOT be sold or disposed at the end of the project. Instead, it will be repurposed and used for other products. Additionally, inventory will increase by $20,000; accounts payable will increase by $5,000; and accounts receivable will increase by $7,000 for the life of the Crystal Coke project. Any changes in net working capital (NWC) will be recovered or reversed at the end of the project. There will be a one time expense of $500,000 for an advertising campaign. This will be paid at the end of 2019. SG&A expenses will increase by $250,000 for the life of the Capital expenditure required: 1,250,000.00 Increase in inventory: 20,000.00 Increase in accounts payable: 5,000.00 Increase in accounts receivable 7,000.00 Revenue per unit, regular coke: 80.5 Revenue per unit, crystal coke: 10 Cost per unit, regular coke: 80.50 55.35 12 1 Cost per unit, crystal coke: 13 201 2020 14 Unit sales, crystal coke: 2021 700,000 650,000 450,000 15 Unit sales lost, regular coke: 500,000 490,000 195,000 16 17 Advertising campaign: 500,000.00 (One time, at end of 2019) 18 Increase in SG&A: 250,000.00 (each year) 19 20 NPV: 21 (put your final answer here) 22 SHOW YOUR WORK BELOW THIS ROW 24 26