Please answer this question in Excel and show both formulas and answers.

ACME Inc. projects unit sales for a new cell phone, the uPhone, are as follows:

Year	Unit Sales
1	80,000
2	120,000
3	130,000
4	120,000
5	60,000

Total fixed costs are $3,900,000 per year, variable production costs are $330 per unit in year 1 and are expected to decrease by 2% each year thereafter (that is each years VC will decrease by 2% from the previous year). The uPhone is priced at $450 each for years 1 through 3 and $410 in years 4 and 5. The equipment needed to begin production has an installed cost of $18,000,000.

The uPhone is expected to decrease the sales of ACME Inc.s initial cell phone, the iDud. ACME Inc. expects that 2,000 units per year of the uPhone will come from the iDud. The iDud is expected to sale for $250 each year and has a variable cost of $100.

Production of the uPhone will require $8,000,000 in net working capital to start and additional networking capital investments each year equal to 30 percent of the projected total sales for that year (including the impact of the iDud).

The equipment is considered industrial machinery and thus qualifies as seven-year MACRs property. In five years this equipment can be sold for 25 percent of its acquisition cost.

ACME Inc. is in the 34 percent marginal tax bracket and has a required return on all of its projects of 15 percent. Based on these preliminary project estimates, what is the NPV and IRR of the project?

Check Figures

Year	FCF
0	-26,000,000.00
1	1,788,548.00
2	Not Given
3	8,365,662.40
4	8,655,393.89
5	20,902,380.89

Please answer this question in Excel and show both formulas and answers.

Thank you very much.