PLEASE ANWSER CLEARLY AND BASED ON EXCEL

Ark Design Inc., is a architecture and development firm that it is considering the expansion of its projects. The new project involves the utilizing cutting edge technologies to expand the sales of architecutral designs and plans by producing physical minature plans. This project is expected to last 5 years and then the product line will be terminated. The company uses the simplified straight-line method over 5 years. It is assumed that the plant and equipment will recover salvage value, if any, at the termination of the project. This project has the following working capital requirement: There will be an initial working capital requirement of $78,750 just to get the production started. For each year, the total investment in net working capital will equal 4.25% of the dollar value of sales for the upcoming year. All working capital is liquidated at the termination of the project at the termination year of the project. Given the following information, determine the free cash flows associated with the project (tabulate your answer on a year by year basis), the project's net present value and the profitability index. Apply the appropriate decision criteria. Sales price per unit: Variable cost per unit: : Year 1 (Per unit) Year 2 (per unit) $5,840 $2,9601 Year 3 (Per unit) Year 4 (per unit) Year 5 (Per unit) $7,8501 $8,600 $8,6001 $7,850 $3,200 $3,2901 $3,2901 $4,650 $32,900 $550,000 Annual fixed costs: Cost of new plant and/or equipment: Shipping and installation costs: Salvage value at termination: $65,075) $119,050 Unit Sales: Year Unit Sold 2 1 78 3 105 4 110 5 110 102 32% Company's marginal corporate tax rate: Project's required rate of return; 12.75%