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Please provide excel formulas 2. NPV and IRR analysis Straw Hat forecasts the following for its future operations. a) Annual sale of 100,000 memberships at
Please provide excel formulas
2. NPV and IRR analysis Straw Hat forecasts the following for its future operations. a) Annual sale of 100,000 memberships at $75 each. b) Cost of goods sold of $25 for each membership. c) Operating expenses of $3,000,000 per year. d) Assume zero net working capital requirements (0 inventory, accounts receivable/payable, and cash). e) An initial investment at the beginning of $7,500,000 on servers and computers, which will be depreciated straight-line to zero over the next 7 years (Wow! No MACRS). f) Tax rate is 38%. g) The investment horizon is assumed to be 7 years. After 7 years, this company's free cash flows will terminate. No liquidation value is assumed given the nature of companyStep by Step Solution
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