Nokia Inc. has one smart phone model on the market, and sales have been excellent. The product is a unique item in the market that it comes in a variety of tropical colors. However, the technology changes rapidly, and the current smart phone has limited features in comparison with newer models. The company is planning for a new smartphone, which will include all the existing features and WiFi tethering in addition. Nokia Inc. can manufacture the new smart phones for $365 each in variable costs. Fixed costs for the operation are estimated to run $6.9 million per year. The estimated sales volume is 180,000 ; 190,000;150,000;125,000; and 100,000 per year for the next five years, respectively. The unit price of the new smart phone will be $625. The necessary equipment can be purchased for $60.0 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $6.8 million. The effective tax rate for the company is 35%. The project requires no initial NWC investment, and it requires NWC balance equal to 15% of sales 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 year's sales. The required return for the project is 20%. Prepare a report in the given excel sheet that answers the following questions. 1. What is the payback period (PBP) of the project? Based on your analysis of PBP, should the company accept the smart phone project if the required payback period is 3 years? Use "if" formula to construct "Accept" or "Reject" decision. (10 points) 2. What is the IRR of the project? Based on your analysis of IRR, should the company accept the project? Use "if" formula to construct "Accept" or "Reject" decision. (10 points) 3. What is the NPV of the project? Based on your analysis of NPV, should the company accept the project? Use "if" formula to construct "Accept" or "Reject" decision. (10 points) 4. What is the Profitability Index (PI) of the project? Based on your analysis of PI, should the company accept the project? Use "if" formula to construct "Accept" or "Reject" decision, (5 points) 5. At what price would Nokia Inc. be indifferent to accepting the project? Use "if" formula to construct "Accept" or "Reject" decision. (10 points) 6. Draw the NPV profile for the Project. (10 points) Question 1 Payback Period Decision? Question 2 NPV Decision? Question 3 IRR Decision? Question 4 Profitability Index Decision? Questions Indiffirent Sales Price Question 6 \begin{tabular}{|c|c|} \hline R & NPV \\ \hline 0.00% & \\ \hline 5.00% & \\ \hline 10.00% & \\ \hline 15.00% & \\ \hline 20.00% & \\ \hline 25.00% & \\ \hline 30.00% & \\ \hline 35.00% & \\ \hline 40.00% & \\ \hline 45.00% & \\ \hline 50.00% & \\ \hline & \\ \hline \end{tabular}