Please explain with excel functions THANK YOU Kodak Films is considering some new equipment whose data are shown below to replace their existing equipment which has a book value of $0 The required equipment has a 3 year tax life, and the accelerated rates for such property are 33 33 , 44 45 , 14 81 , and 7 41 for Years 1 through 4 and it would have a positive pre tax salvage value at the end of Year 3, when the project would be closed down Also, some new working capital would be required, but it would be recovered at the end of the project's life Revenues and other operating costs are expected to be constant over the project's 3 year life What is the project's NPV WACCCostofnewequipment(depreciablebasis)SalvagevalueofoldequipmentRequirednewworkingcapitalSalesrevenues,eachyearOperatingcosts(excl deprec ),eachyearExpectedpretaxsalvagevaluenewTaxrate11 0 $70,000$4,000$10,000$75,000$30,000$5,00030 0

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Please explain with excel functions - THANK YOU! Kodak Films is considering some new equipment whose data are shown below to replace their existing equipment

Please explain with excel functions - THANK YOU!

Kodak Films is considering some new equipment whose data are shown below to replace their existing equipment which has a book value of $0. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4 and it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

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WACCCostofnewequipment(depreciablebasis)SalvagevalueofoldequipmentRequirednewworkingcapitalSalesrevenues,eachyearOperatingcosts(excl.deprec.),eachyearExpectedpretaxsalvagevaluenewTaxrate11.0%$70,000$4,000$10,000$75,000$30,000$5,00030.0%