Please Answer using excel and explaining how you did it and show the formulas and cell references please. Thank you!

Here are some facts to help answer the questions down below:

• MSD has decided to spend 10,000 dollars on the development and research for a new project called the Tyrone Project.

• This project will ask of us to building a new manufacturing plant for it. MSD had bought a piece of land about 5 years ago for a total cost of 25,000 dollars. This same land was evaluated and has been at 20,000 dollars today. However, If MSD decides to reject the Tyrone project they will decide to sell this piece of property as it will no provide any use for them.

• MSD decides that they will spend a total of 100,000 dollars to build this plant. This new plant will be depreciated down to zero on a straight-line basis, over the projects 5 year useful life.

• MSD has decided to increase the Net Working Capital by 20,000 dollars at time zero. NWC will then decrease by $5000 each year of the projects life, so that after year 5 the NWC is completely recovered.

• The fixed assets that are associated with the project will have a salvage value of $10,000 at time 5

• MSD has spent 10,000 dollars on a marketing study that resulted in this sales forecast for the quantity sold each year:

• year	units sold (Q)
  1	1200
  2	110% of year 1 q
  3	105% of year 1 q
  4	95% of year 1 q
  5	90% of year 1 q

• This new product will sell for $80/unit, with variable costs of 40% of sales.

• Fixed costs associated with the Tyrone project will be 15,000 dollars per year.

• Adopting the Tyrone project will cause sales of MSDs existing product to fall by 100 units per year. The old product sells for $60/unit with variable costs of 55% of sales.

• Recall that MSDs tax rate is 22%.

  For these questions please solve using Excel and explain how you did them, As well as please show the formulas you used and the cell referencing you have done as well.

• a) What is the initial (time zero) cash flow associated with the project? Include all incremental cash flows (show on excel please).

  b) What is the annual operating cash flow (OCF) for each of years 1-5 of the Tyrone project? (Note: compute only annual OCF here. Do not include NWC effects or salvage value. Please show on excel).

  c) Set up a table which details all the incremental cash flows (OCF, net capital spending, net working capital, salvage, etc.) to the Tyrone project for each of years 0 through 5. Add up the cash flows for each year to get a timeline of the total cash flows to the project at each date on the timeline (Answer problem on excel please).

  d) Should MSD accept or reject the Tyrone Project? Why or Why not? (Show your computations and reasoning on excel)