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please show cells and formulas with answer You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The

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You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly The company bought some land three years ago for $1.9 milliorrin anticipation of using it as a toxic waste dump site but has recently hired another company to handle all tovic materials. Based on a recent appraisal, the company believes it could sell the land for $2.2 million on an aftertax basis. In four years, the land could be sold for $2.4 million after takes. The company also hired a marketing firm to analyze the zither market, at a cost of $275,000. An excerpt of the marketing report is as follows: The zither industry will have a rapid expansion in the next four years. With the brand name recognition that PUTZ brings to bear, we feel that the company will be able to sell 5,200,5,900,6,500, and 4,800 units each year for the next four years, respectively. Again, capitalizing on the name recognition of PUTZ, we feel that a premium price of $435 can be charged for each zither. Because zithers appear to be a fad, we feel at the end of the four-year period, sales should be discontinued. PUTZ believes that fixed costs for the project will be $375,000 per year, and variable costs are 20 percent of sales. The equipment necessary for production will cost $2.85 million and will be depreciated according to a three-year MACRS schedule. At the end of the project, the equipment can be scrapped for $405,000. Net working capital of $150,000 will be required immediately. PUTZ has a tax rate of 22 percent, and the required return on the project is 13 percent. What is the NPV of the project? (Use cells A7 to F21 from the given information to complete this question. You must use the bult-in Excel function to answer: this question. Enter a " 0 " for any value that should not be included. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.) Afrertax salvage value Sell equipment Taxes Aftertax cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Rervenue Fined costs Variable costs Depreciation EBT Tanes Net income OCF Fixed assets 43 Land 44 Marketing study 45 Net working capital 46 Total cash flow NPV

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