Please help with Cell Referencing!

B D H M N 1 Problem 8-25 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.75 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the installation will decrease sales by $5 million this year. Once the machine is operating next year, the cost of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production will require additional inventory on hand of $1 million to be added in year 0 and depleted in year 10. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 15% of revenues and payables to be 10% of the cost of goods sold (starting in year 0 and ending in pear 10). Billingham's marginal corporate tax rate is 15% a. Determine the incremental earnings from the purchase of the XC-750. b. Determine the free cash flow from the purchase of the XC-750. c. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase. d. While the expected new sales will be $10 million per year from the expansion, estimates range from $8 million to $12 million. What is the NPV in the worst case? In the best case? e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold? f. Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $4 million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3-10. What level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Tax rate Cost of goods as % of sales Receivables as % of sales Payables as % of COGS Machine price (000) Machine life (years) Increased inventory (000) First year sales (000) Disrupted sales (000) Personnel (000) Cost of capital 15% 70% 15% 10% $2,750 10 $1.000 $10.000 $5,000 $2,000 10% 22 23 24 25 26 27 28 29 30 a. Determine the incremental earnings from the purchase of the XC-750. b. Determine the free cash flow from the purchase of the XC-750. c. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase. 31 11 0 $5,000 $3,500 31 32 33 34 35 36 37 38 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $10,000 $7,000 -$2,000 -$275 $725 -$109 S616 $275 2 $10,000 $7,000 -$2,000 -$275 $725 -$109 $616 $275 3 $10,000 $7,000 -$2,000 -$275 $725 $109 $616 $275 4 $10,000 $7,000 -$2,000 -$275 $725 $109 $616 $275 5 S $10,000 $7,000 -$2,000 -$275 $725 $109 S616 $275 6 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 7 $10,000 $7,000 -$2.000 -$275 $725 $109 $616 $275 8 $10,000 $7,000 -$2,000 -S275 $725 $109 $616 $275 9 9 $10,000 $7,000 -$2,000 -S275 $725 $109 $616 $275 10 $10,000 $7,000 -$2,000 -$275 $725 -$109 $616 $275 $1,500 $225 $1,275 39 40 41 42 43 -$2,750 S600 $4.625 SO -$1,200 -S309 so $891 SO $891 SO $891 SO $891 $0 $891 SO $891 SO $891 $1,000 $1,891 $800 $800 $891 44 45 NPV (000) 46 47 48 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,500 -$700 $0 SO 49 $750 - $350 $1,000 $600 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 S1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 $700 $1.000 $1,800 $1,500 -$700 $1,000 $1,800 $ 50 51 52 $800 SO d. While the expected new sales will be $10 million per year from the expansion, estimates range from $8 million to $12 million. What is the NPV in the worst case? In the best case? 53 54 High revenue Low revenue $12.000 $8.000 11 SS 56 57 58 59 60 61 62 63 0 0 -$5,000 $3.500 $12,000 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $12,000 -$8,400 -$2,000 $275 $1,325 -S199 $1,126 $275 2 $12,000 -$8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 3 $12,000 -$8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 Free Cash Flows in the Best Case 4 5 6 7 7 $12,000 $12,000 $12,000 $8,400 -$8,400 -$8,400 -$8,400 -$2,000 -$2,000 $2,000 -$2,000 -$275 -$275 -$275 -$275 $1,325 $1,325 $1,325 $1,325 $199 -$199 -$199 $199 $1,126 $1,126 $1,126 $1,126 $275 $275 $275 $275 8 8 $12,000 $8,400 $2,000 -S275 $1,325 $199 $1,126 $275 9 $12,000 $8,400 -$2,000 -$275 $1,325 $199 $1,126 $275 10 $12,000 -$8,400 $2,000 -$275 $1,325 -S199 $1,126 $275 64 $1,500 $225 $1,275 65 66 67 68 69 -$2,750 $600 $4.625 -$1,360 $41 SO $1,401 SO $1,401 SO $1,401 SO $1,401 SO $1,401 $ SO $1,401 SO $1,401 SO $1,401 $1,000 $2,401 $960 $960 70 NPV (000) 71 72 73 74 75 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,800 -$840 $0 SO $750 $350 $1,000 $600 1111 111111 $1,800 -S840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 $840 $1,000 $1,960 $1,800 $1,800 $1,800 $1,800 $840 -$840 -$840 -$840 $1,000 $1,000 $ $1,000 $1,000 $1,960 $1,960 $1,960 $1,960 Em Carb Clour in the noch WC Carn 111 $1,800 $840 $1,000 $1,960 $1,800 -8840 $1,000 $1,960 76 77 $960 SO 11 11 78 79 80 81 82 83 84 0 -$5,000 $3,500 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $8,000 -$5,600 -$2.000 -$275 $125 -$19 $106 $275 2 $8,000 -S5,600 $2,000 -S275 $125 $19 $106 $275 3 $8,000 -$5,600 -$2,000 -$275 $125 $19 S106 $275 Free Cash Flows in the Worst Case 4 4 5 6 7 7 $8,000 $8,000 $8,000 $8,000 -$5,600 $5,600 -$5,600 -$5,600 -$2,000 -$2,000 $2,000 - -$2,000 -$275 $275 -$275 -$275 $125 $125 $125 $125 -$19 -$19 $19 $19 $106 $106 S106 $106 $275 $275 $275 $275 8 $8,000 -S5.600 -$2.000 -$275 $125 -$19 $106 $275 9 $8.000 $5,600 -$2,000 -$275 $125 $19 $106 $275 10 $8,000 -S5,600 -$2,000 -$275 $125 -$19 $106 $275 85 $1,500 $225 -$1,275 86 87 88 89 -$2,750 -5600 -$4,625 $1,040 -$659 $0 $381 $0 $381 $0 $381 SO $381 $0 $381 $0 $381 $0 $381 $0 $381 $1,000 $1,381 $640 $640 90 91 92 NPV (000) 93 94 SO 95 96 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,200 -S560 -S750 $350 $1,000 $600 so $1,200 -5560 $1,000 $1,640 $1,200 $560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 $ -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 97 $1,640 $640 SO e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold? 98 99 99 100 101 102 103 104 Breakeven sales (original assumptions) Breakeven COGS (original assumptions) $10,143 69.55% f. Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $4 million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3-10. What level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? Machine price (000) $4,000 11 0 0 $5,000 $3,500 2 $10,000 -$7.000 -S2,000 $400 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $10,000 -$7,000 -$2,000 -$400 $600 -$90 $510 $400 3 $10,649 -$7,454 -$2,000 -S400 $795 -$119 S675 $400 $ 4 $10,649 -$7,454 -$2,000 -S400 $795 -$119 $675 $400 5 $10.649 $7,454 -$2,000 -$400 $795 $119 $675 $400 6 $10,6491 $7,454 -$2,000 -$400 $795 -$119 $675 $400 7 $10,649 -$7,454 -S2,000 -S400 $795 $119 $675 $400 8 $10.649 -$7,454 -$2,000 $400 $795 $119 $675 $400 9 $10,649 $7,454 -$2,000 -$400 $795 $119 $675 $400 10 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 -$1,500 $225 -$1,275 $600 $90 $510 $400 -$4,000 -S600 $5,875 $1,200 -$290 SO $910 $52 $1,024 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 SO $1,075 $ SO $1,075 $1,000 $2,075 $852 $852 NPV (000) ) Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,597 -$745 SO SO -$750 S350 $1,000 S600 $1,500 -$700 $1,000 $1,800 $1,500 -S700 $1,000 $1,800 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $852 SO 129 130 Breakeven sales (more expensive machine) $10,649 131) Additional sales needed to break even 132 133 134 Requirements 135 1. Start Excel - completed. 136 2. In cell D45, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 137 3. In cell D71, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 138 4. In cell D92, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 139 5. In cell D122, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 140 6. In cell E131, by using cell references, calculate the additional sales needed to break even (1 pt.). 141 7. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 142 143 144 145 B D H M N 1 Problem 8-25 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.75 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the installation will decrease sales by $5 million this year. Once the machine is operating next year, the cost of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production will require additional inventory on hand of $1 million to be added in year 0 and depleted in year 10. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 15% of revenues and payables to be 10% of the cost of goods sold (starting in year 0 and ending in pear 10). Billingham's marginal corporate tax rate is 15% a. Determine the incremental earnings from the purchase of the XC-750. b. Determine the free cash flow from the purchase of the XC-750. c. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase. d. While the expected new sales will be $10 million per year from the expansion, estimates range from $8 million to $12 million. What is the NPV in the worst case? In the best case? e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold? f. Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $4 million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3-10. What level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Tax rate Cost of goods as % of sales Receivables as % of sales Payables as % of COGS Machine price (000) Machine life (years) Increased inventory (000) First year sales (000) Disrupted sales (000) Personnel (000) Cost of capital 15% 70% 15% 10% $2,750 10 $1.000 $10.000 $5,000 $2,000 10% 22 23 24 25 26 27 28 29 30 a. Determine the incremental earnings from the purchase of the XC-750. b. Determine the free cash flow from the purchase of the XC-750. c. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase. 31 11 0 $5,000 $3,500 31 32 33 34 35 36 37 38 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $10,000 $7,000 -$2,000 -$275 $725 -$109 S616 $275 2 $10,000 $7,000 -$2,000 -$275 $725 -$109 $616 $275 3 $10,000 $7,000 -$2,000 -$275 $725 $109 $616 $275 4 $10,000 $7,000 -$2,000 -$275 $725 $109 $616 $275 5 S $10,000 $7,000 -$2,000 -$275 $725 $109 S616 $275 6 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 7 $10,000 $7,000 -$2.000 -$275 $725 $109 $616 $275 8 $10,000 $7,000 -$2,000 -S275 $725 $109 $616 $275 9 9 $10,000 $7,000 -$2,000 -S275 $725 $109 $616 $275 10 $10,000 $7,000 -$2,000 -$275 $725 -$109 $616 $275 $1,500 $225 $1,275 39 40 41 42 43 -$2,750 S600 $4.625 SO -$1,200 -S309 so $891 SO $891 SO $891 SO $891 $0 $891 SO $891 SO $891 $1,000 $1,891 $800 $800 $891 44 45 NPV (000) 46 47 48 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,500 -$700 $0 SO 49 $750 - $350 $1,000 $600 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 S1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,500 $700 $1.000 $1,800 $1,500 -$700 $1,000 $1,800 $ 50 51 52 $800 SO d. While the expected new sales will be $10 million per year from the expansion, estimates range from $8 million to $12 million. What is the NPV in the worst case? In the best case? 53 54 High revenue Low revenue $12.000 $8.000 11 SS 56 57 58 59 60 61 62 63 0 0 -$5,000 $3.500 $12,000 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $12,000 -$8,400 -$2,000 $275 $1,325 -S199 $1,126 $275 2 $12,000 -$8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 3 $12,000 -$8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 Free Cash Flows in the Best Case 4 5 6 7 7 $12,000 $12,000 $12,000 $8,400 -$8,400 -$8,400 -$8,400 -$2,000 -$2,000 $2,000 -$2,000 -$275 -$275 -$275 -$275 $1,325 $1,325 $1,325 $1,325 $199 -$199 -$199 $199 $1,126 $1,126 $1,126 $1,126 $275 $275 $275 $275 8 8 $12,000 $8,400 $2,000 -S275 $1,325 $199 $1,126 $275 9 $12,000 $8,400 -$2,000 -$275 $1,325 $199 $1,126 $275 10 $12,000 -$8,400 $2,000 -$275 $1,325 -S199 $1,126 $275 64 $1,500 $225 $1,275 65 66 67 68 69 -$2,750 $600 $4.625 -$1,360 $41 SO $1,401 SO $1,401 SO $1,401 SO $1,401 SO $1,401 $ SO $1,401 SO $1,401 SO $1,401 $1,000 $2,401 $960 $960 70 NPV (000) 71 72 73 74 75 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,800 -$840 $0 SO $750 $350 $1,000 $600 1111 111111 $1,800 -S840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 $840 $1,000 $1,960 $1,800 $1,800 $1,800 $1,800 $840 -$840 -$840 -$840 $1,000 $1,000 $ $1,000 $1,000 $1,960 $1,960 $1,960 $1,960 Em Carb Clour in the noch WC Carn 111 $1,800 $840 $1,000 $1,960 $1,800 -8840 $1,000 $1,960 76 77 $960 SO 11 11 78 79 80 81 82 83 84 0 -$5,000 $3,500 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $8,000 -$5,600 -$2.000 -$275 $125 -$19 $106 $275 2 $8,000 -S5,600 $2,000 -S275 $125 $19 $106 $275 3 $8,000 -$5,600 -$2,000 -$275 $125 $19 S106 $275 Free Cash Flows in the Worst Case 4 4 5 6 7 7 $8,000 $8,000 $8,000 $8,000 -$5,600 $5,600 -$5,600 -$5,600 -$2,000 -$2,000 $2,000 - -$2,000 -$275 $275 -$275 -$275 $125 $125 $125 $125 -$19 -$19 $19 $19 $106 $106 S106 $106 $275 $275 $275 $275 8 $8,000 -S5.600 -$2.000 -$275 $125 -$19 $106 $275 9 $8.000 $5,600 -$2,000 -$275 $125 $19 $106 $275 10 $8,000 -S5,600 -$2,000 -$275 $125 -$19 $106 $275 85 $1,500 $225 -$1,275 86 87 88 89 -$2,750 -5600 -$4,625 $1,040 -$659 $0 $381 $0 $381 $0 $381 SO $381 $0 $381 $0 $381 $0 $381 $0 $381 $1,000 $1,381 $640 $640 90 91 92 NPV (000) 93 94 SO 95 96 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,200 -S560 -S750 $350 $1,000 $600 so $1,200 -5560 $1,000 $1,640 $1,200 $560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 $1,200 $ -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,200 -S560 $1,000 $1,640 $1,200 -S560 $1,000 $1,640 97 $1,640 $640 SO e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold? 98 99 99 100 101 102 103 104 Breakeven sales (original assumptions) Breakeven COGS (original assumptions) $10,143 69.55% f. Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $4 million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3-10. What level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? Machine price (000) $4,000 11 0 0 $5,000 $3,500 2 $10,000 -$7.000 -S2,000 $400 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals net operating income Minus income tax Equals unlevered net income Plus depreciation Capital expenditures Add to NWC Free cash flow 1 $10,000 -$7,000 -$2,000 -$400 $600 -$90 $510 $400 3 $10,649 -$7,454 -$2,000 -S400 $795 -$119 S675 $400 $ 4 $10,649 -$7,454 -$2,000 -S400 $795 -$119 $675 $400 5 $10.649 $7,454 -$2,000 -$400 $795 $119 $675 $400 6 $10,6491 $7,454 -$2,000 -$400 $795 -$119 $675 $400 7 $10,649 -$7,454 -S2,000 -S400 $795 $119 $675 $400 8 $10.649 -$7,454 -$2,000 $400 $795 $119 $675 $400 9 $10,649 $7,454 -$2,000 -$400 $795 $119 $675 $400 10 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 -$1,500 $225 -$1,275 $600 $90 $510 $400 -$4,000 -S600 $5,875 $1,200 -$290 SO $910 $52 $1,024 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 SO $1,075 $ SO $1,075 $1,000 $2,075 $852 $852 NPV (000) ) Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,597 -$745 SO SO -$750 S350 $1,000 S600 $1,500 -$700 $1,000 $1,800 $1,500 -S700 $1,000 $1,800 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -S745 $1,000 $1,852 $852 SO 129 130 Breakeven sales (more expensive machine) $10,649 131) Additional sales needed to break even 132 133 134 Requirements 135 1. Start Excel - completed. 136 2. In cell D45, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 137 3. In cell D71, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 138 4. In cell D92, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 139 5. In cell D122, by using cell references and the function NPV, calculate the NPV of the project for this scenario (1 pt.). 140 6. In cell E131, by using cell references, calculate the additional sales needed to break even (1 pt.). 141 7. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 142 143 144 145