Part (B)

Calculate the projects NPV, IRR, MIRR, and payback. Do these indicators suggest that the project should be accepted? Explain.

Please also show work in excel.

I. Investment Outlays Equipment cost Shipping andinstallation CAPEX \begin{tabular}{l} x \\ x \\ \hline x \end{tabular} Increase in inventory Increase in Accounts Payable NOWC \begin{tabular}{l} x \\ x \\ \hline X \end{tabular} II. Project Operating Cash Flows Unit sales Price per unit Total revenues Operating costs (w/o deprn) Depreciation Total costs EBIT (Operating income) Taxes on operating income EBIT (1T)= After Tax operating income Add back depreciation EBIT (1T)+ DEP $0 III. Project Termination Cash Flows Salvage value Tax on salvage value After-tax salvage value NOWC = Recovery of NOWC Project Free Cash Flows = EBIT(1-T) + DEP - CAPEX - NOWC \begin{tabular}{lllll} \hline$(518,000) & x & x & 30,000 \\ \hline \hline \end{tabular}