please, do it in excel

Barbara Chan, graduated with an MFA in fashion design and started a successful clothing and accessories design company, Asia Style. Recently, Barbara set to work developing a series of fashion handbags. She has worked out the details for the production and sales of this new venture. By her estimates, she has spent $25,000 on research and samples. Barbara expects an A-year life span for this particular product line project and plans on evaluating the project on that basis (A = 5.6 ). In order to start the project, Barbara plans to set up the projects new operation in a land the company already owns, which was acquired three years ago for $1.2 million and which can be sold today for $1 million dollars. In addition to the land, the project requires computer driven cutting and assembly machines for the major work. The cost of the machines would be $1.15 million dollars. Shipping and installation would run $18,000 x B ((B = 1.25). This machine would be fully depreciated on a straight-line basis over the next 10 years for tax purposes. At the end of the A-year project, the machinery can be sold for $400,000. Based on the analysis of the market research, Barbara believes the bag can be sold at a price of $35.00 per unit in the first year of launch. Then, the price should rise with inflation, currently estimated to be 3%. Barbara thinks sales could start around 50,000 units in the first year. From year 2 onward, the unit sales are expected to grow at a rate of 15% per year. The project take 1 man-hours to make each bag at a cost of $6.00 per hour. Shipping would cost $1,500 per 1,000 bags. Raw material costs would run $11.10 per bag and fixed overhead cost should be $15,000 per year. Labor costs have been rising 4% per year; whereas raw material and overhead costs are expected to rise with inflation, 3%. The company would need working capital equal to 8% of the coming years sales at all times. The tax rate for the company is of 35%. Relevant information to estimate the discount rate (cost of capital) is as follow: - The beta of Asia Style is 1.C (C=4). The risk free rate is 3.5% and the expected return on the market is 11%. Asia Style has 50 million common stock outstanding that are selling for $35 each in the market. The book value of common equity for Asia Style is $1,500 million. - Asia Style has bond outstanding. The coupon is paid half yearly at the rate of 8%. Bond with similar characteristics are yielding at 6% p.a. The market value of bonds is $300 million. - Asia Style has 400,000 shares of the preferred stock which pay dividend $9.6 forever which currently sells for $80 per share on the stock market. - The project is believed to have the same risk as firms typical project Requirements:

a. Calculate the discount rate (WACC) of the project (20 pts) (Note: if you cannot answer this question, assume that the discount rate is 15%)

b. Calculate the net present value (NPV) and the internal rate of return (IRR) of the project (50 pts) c. Should Asia Style proceed the project and why? (10 pts)