Net Present Value of a Capital Project

FINAL $-$ EXTRA CREDIT $(75$ POINTS$)$

Your company is evaluating the startup of a new production line. As the lead engineer on the project wour job is to compile the sales forecasts, estimate the initial cost to establish the production line and to get the annual costs associated with the products. Your company wants a seven$-$vear evaluation with a minimum internal Rate of Retum of $14\mathrm{.}9\%.$ The cost af copitai is $9\mathrm{.}9\%.$

Initial Cost of the Project $=$$$0,000,000$

Sales Forecasts:

Product $A=5200,000$ each year

Product $B=$$$350,000$ each year

Product $C=$$$480,000$ each year

Product $D=$$$410,000$ each year

Product $E=$$$380,000$ each year

Production Costs:

Preventive Maintenance $=$$$250,000$ annually

Equipment Upgraces $=$$$50,000$ annually

Sales $/$ Technical Support $-$$$100,000$ annually

Misc. Materials $=$$$100,\frac{000}{5150},\frac{000}{\text{\$}}170,\frac{000}{\text{\$}}200,\frac{000}{5220},\frac{000}{?}$ $$200,\frac{000}{\text{\$}}210,000$

Caiculate the NPV$,$ IRR, & AOI to help you make your recommendation. Show all your work in Excel or Sheets.