Petroperu can manufacture the new smart phones for $350each in variable costs.Fixed costs for the operation are estimated to run $4.25million per year. The estimated sales volume is80,000; 90,000; 120,000; 130,000; and 140,000per year for the next five years, respectively.The unit priceof the new smart phone will be$600.The necessary equipment can be purchased for $65 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be$3.5 million.

The effective tax rate for the company is 21%.The project requires no initial NWC investment, and it requiresNWC balance equal to 15%of sales, thereafter.The required return for the project is 14%.

Mr. Scott has asked you to elaborate excel report that answers the following questions.

Question:

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.-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.-What is the discounted payback period (DPBP) of the project? Based on your analysis of DPBP, should the company accept the smart phone project if the required discounted payback period is 4 years? Use "if" formula to construct "Accept" or "Reject" decision.-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.-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.-At what price would Electrone Americas be indifferent to accepting the project? Use "if" formula to construct "Accept" or "Reject" decision.

-Draw the NPV profile for the Project.-Based on your answers would you accept or reject the project? Why? Justify your decision