Please show formulas used in excel! thanks!

B C G H D TCICI CHCE EU che cu m WHICH THE Lata is vumu. IVIANE Your computations my mu me viu ccus mgmgmcu ve Woman cases, mics (HCI WISC 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: 6 7 8 - 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 year 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? 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 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% A B D E F G H I J L . N 0 26 Cost of capital 10% 27 28 29 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. 30 31 32 6 9 11 33 0 -$5,000 $3,500 34 35 36 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 $616 $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 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 $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 -$275 $725 -$109 $616 $275 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 10 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 37 38 -$1,500 $225 -$1,275 39 40 41 42 -$2,750 -$600 -$4,625 -$1,200 -$309 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $1,000 $1,891 $800 $800 43 44 45 NPV (000) 46 47 48 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,500 -$700 $0 $0 49 -$750 $350 $1,000 $600 $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 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 50 51 $800 $0 52 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 55 High revenue Low revenue $12,000 $8,000 56 E F G H H K L M N 0 D $8.000 Low revenue AA 56 57 58 59 60 11 0 -$5,000 $3,500 61 62 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 $12,000 $12.000 $12,000 $12.000 -$8,400 -$8,400 -$8.400 -S8,400 -$2,000 -$2,000 -$2,000 -S2,000 -$275 -$275 -$275 -$2751 $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 $12,000 -S8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 9 $12.000 -$8.400 -$2,000 -S275 $1,325 -$199 $1,126) $275 10 $12,000 -$8.400 -$2,000 -$275 $1,325 -S199 $1,126 S275 63 64 -$1,500 S225 -$1,275 65 66 67 68 -$2,750 -S600 -$4,625 -$1,360 S41 $0 $1,401 SO $1,401 SO $1,401 SO $1,401 SO $1,401 $0 $1,401 $0 $1,401 $0 $1,401 $1,000 $2,401 S960 5960 NPV (000) 69 70 71 72 73 74 75 76 77 78 79 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,800 -5840 $0 $0 -S750 S350 $1,000 S600 $1,800 -S840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 -$840 $1,000 S1.960 $1,800 -5840 $1,000 $1,960 S960 $0 9 11 0 -$5,000 $3,500 80 81 82 83 84 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals nct 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 -S19 $106 S275 2 $8,000 -$5,600 -$2,000 -$275 $125 -S19 $106 $275 3 $8,000 -$5,600 -$2,000 -$275 $125 -S19 $106 $275 $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 Free Cash Flows in the Worst Case 4 5 6 7 $8,000 $8,000 S8,000 S8,000 -$5,600 -$5,600 -$5,600 -S5,600 -$2,000 -$2,000 -$2.000 -$2,000 -$275 -$275 -$275 -$275 $125 $125 $125 $125 -$19 -$19 -$19 -$19 $106 $106 $106 $106 $275 $275 $275 $275 8 S8,000 -S5,600 -$2,000 -$275 $125 -$19 $106 $275 10 $8,000 -$5,600 -$2,000 -S275 S125 -$19 $106 S275 $8,000 -$5,600 -$2,000 -$275 $125 -$19 $106 S275 -$1,500 S225 -$1,275 85 86 87 BB 89 90 91 -$2,750 -S600 -$4.6251 -$1,040 -S659 SO $381 SO $381 SO $381 SO $381 SO $381 SO $381 $0 $ $381 $0 $381 $1,000 $1,381 S640 S640 92 NPV (000) | B C D E F G . I J L M N O 93 94 95 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,200 -$560 $0 $0 96 97 -$750 $350 $1,000 $600 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 98 $640 $0 99 100 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? 101 102 Breakeven sales (original assumptions) Breakeven COGS (original assumptions) $10,143 69.55% 103 104 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 310. 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? 105 106 Machine price (000) $4,000 107 108 109 9 11 110 0 -$5,000 $3,500 111 112 113 114 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 2 $10,000 -$7,000 -$2,000 -$400 $600 -$90 $510 $400 3 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 4 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 5 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 6 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 7 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 8 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 $10,649 $7,454 -$2,000 -$400 $795 -$119 $675 $400 10 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 115 -$1,500 $225 -$1,275 116 117 118 -$4,000 -$600 -$5,875 -$1,200 -$290 $0 $910 -$52 $1,024 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $1,000 $2,075 $852 $852 119 120 121 122 NPV (000) B C D E G H M N 0 NPV (000) 122 123 124 125 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,597 -$745 $0 $0 126 127 -$750 $350 $1,000 $600 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $852 $0 128 129 $10,649 130 131 132 Breakeven sales (more expensive machine) Additional sales needed to break even 133 134 rements 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. B C G H D TCICI CHCE EU che cu m WHICH THE Lata is vumu. IVIANE Your computations my mu me viu ccus mgmgmcu ve Woman cases, mics (HCI WISC 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: 6 7 8 - 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 year 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? 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 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% A B D E F G H I J L . N 0 26 Cost of capital 10% 27 28 29 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. 30 31 32 6 9 11 33 0 -$5,000 $3,500 34 35 36 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 $616 $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 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 $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 -$275 $725 -$109 $616 $275 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 10 $10,000 -$7,000 -$2,000 -$275 $725 -$109 $616 $275 37 38 -$1,500 $225 -$1,275 39 40 41 42 -$2,750 -$600 -$4,625 -$1,200 -$309 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $0 $891 $1,000 $1,891 $800 $800 43 44 45 NPV (000) 46 47 48 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,500 -$700 $0 $0 49 -$750 $350 $1,000 $600 $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 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 50 51 $800 $0 52 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 55 High revenue Low revenue $12,000 $8,000 56 E F G H H K L M N 0 D $8.000 Low revenue AA 56 57 58 59 60 11 0 -$5,000 $3,500 61 62 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 $12,000 $12.000 $12,000 $12.000 -$8,400 -$8,400 -$8.400 -S8,400 -$2,000 -$2,000 -$2,000 -S2,000 -$275 -$275 -$275 -$2751 $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 $12,000 -S8,400 -$2,000 -$275 $1,325 -$199 $1,126 $275 9 $12.000 -$8.400 -$2,000 -S275 $1,325 -$199 $1,126) $275 10 $12,000 -$8.400 -$2,000 -$275 $1,325 -S199 $1,126 S275 63 64 -$1,500 S225 -$1,275 65 66 67 68 -$2,750 -S600 -$4,625 -$1,360 S41 $0 $1,401 SO $1,401 SO $1,401 SO $1,401 SO $1,401 $0 $1,401 $0 $1,401 $0 $1,401 $1,000 $2,401 S960 5960 NPV (000) 69 70 71 72 73 74 75 76 77 78 79 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,800 -5840 $0 $0 -S750 S350 $1,000 S600 $1,800 -S840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 -$840 $1,000 $1,960 $1,800 -$840 $1,000 S1.960 $1,800 -5840 $1,000 $1,960 S960 $0 9 11 0 -$5,000 $3,500 80 81 82 83 84 Year Sales revenue Cost of goods sold Additional personnel Depreciation Equals nct 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 -S19 $106 S275 2 $8,000 -$5,600 -$2,000 -$275 $125 -S19 $106 $275 3 $8,000 -$5,600 -$2,000 -$275 $125 -S19 $106 $275 $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 Free Cash Flows in the Worst Case 4 5 6 7 $8,000 $8,000 S8,000 S8,000 -$5,600 -$5,600 -$5,600 -S5,600 -$2,000 -$2,000 -$2.000 -$2,000 -$275 -$275 -$275 -$275 $125 $125 $125 $125 -$19 -$19 -$19 -$19 $106 $106 $106 $106 $275 $275 $275 $275 8 S8,000 -S5,600 -$2,000 -$275 $125 -$19 $106 $275 10 $8,000 -$5,600 -$2,000 -S275 S125 -$19 $106 S275 $8,000 -$5,600 -$2,000 -$275 $125 -$19 $106 S275 -$1,500 S225 -$1,275 85 86 87 BB 89 90 91 -$2,750 -S600 -$4.6251 -$1,040 -S659 SO $381 SO $381 SO $381 SO $381 SO $381 SO $381 $0 $ $381 $0 $381 $1,000 $1,381 S640 S640 92 NPV (000) | B C D E F G . I J L M N O 93 94 95 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,200 -$560 $0 $0 96 97 -$750 $350 $1,000 $600 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 $1,200 -$560 $1,000 $1,640 98 $640 $0 99 100 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? 101 102 Breakeven sales (original assumptions) Breakeven COGS (original assumptions) $10,143 69.55% 103 104 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 310. 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? 105 106 Machine price (000) $4,000 107 108 109 9 11 110 0 -$5,000 $3,500 111 112 113 114 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 2 $10,000 -$7,000 -$2,000 -$400 $600 -$90 $510 $400 3 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 4 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 5 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 6 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 7 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 8 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 $10,649 $7,454 -$2,000 -$400 $795 -$119 $675 $400 10 $10,649 -$7,454 -$2,000 -$400 $795 -$119 $675 $400 115 -$1,500 $225 -$1,275 116 117 118 -$4,000 -$600 -$5,875 -$1,200 -$290 $0 $910 -$52 $1,024 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $0 $1,075 $1,000 $2,075 $852 $852 119 120 121 122 NPV (000) B C D E G H M N 0 NPV (000) 122 123 124 125 Net Working Capital Increased receivables Increased payables Increased inventory NWC (000) $1,597 -$745 $0 $0 126 127 -$750 $350 $1,000 $600 $1,500 -$700 $1,000 $1,800 $1,500 -$700 $1,000 $1,800 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $1,597 -$745 $1,000 $1,852 $852 $0 128 129 $10,649 130 131 132 Breakeven sales (more expensive machine) Additional sales needed to break even 133 134 rements 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