Please solve this question using the spreadsheet provided in the second image: DPN = Depriciation

Hindustan Motors has been producing its Ambassador car in India since 1948. As the company's Web site explains, the Ambassador's "dependability, spaciousness and comfort factor have made it the most preferred car of generations of Indians. Hindustan is now considering producing the car in China. This will involve an initial investment of RMB 4 billion. The plant can be depreciated straight-line over the five-year period. The plant will start production one year from today. It is expected to last for five years and be depreciated to zero. It is expected that the plant will have a market value of the end of this period of RMB 500 million. The plant will produce 100,000 cars a year. The firm anticipates that in the first year it will be able to sell each car for RMB 65,000, and thereafter the price is expected to increase by 4% a year. Raw materials for each car are forecasted to cost RMB 25,000 in the first year and these costs are predicted to increase by 3% annually. Total labor costs for the plant are expected to be 20% of sales. The land on which the plant is built could be rented for five years if the plant were not built on it and the first year's lost rent is RMB 300 million (pretax). The lost rent from the land is paid at the beginning of the year (6 payments total) and is expected to increase by 3% per year. Net working capital is expected to be 10% of the following year's sales. For instance, if sales in year 1 are RMB 6.5 billion, then NWC in year 0 is RMB 650 million. Hindustan's discount rate for this type of project is 12 and profits will be taxed at 25%. Assume all cash flows occur at the end of each year except where otherwise stated. 1. Complete the excel spreadsheet at the bottom of this assignment. Once completed, print it and turn it in; make sure to highlight your estimates of: a. OP CF by year b. FCF by year Discount factor by year d. Value at year 0 of each CF 2. Estimate the project's NPV? C. Years 0 2 3 4 5 INPUTS Price/un Cost/un 67,600 70,304 73,116 76,041 EXCEL SPREADSHEET INPUTS Init Investment don # years dpa/yc Market value Sales units 100,000 Price/un 65,000 Cost/un 25,000 1 65,000 25,000 100,000 Sales Un 100,000 100,000 100,000 100,000 INCOME STATEMENT Sales $ CGS Gross Profit Labor Land 0.04 Price growth Cost growth Labor cost Don Prof B4 Tx Tax Land Rent growth NWC Prof Aft Tx Tax Ratel OPERATING CASH FLOWS Rev den OP CF SALVAGE VALUE MKT Book FREE CASH FLOW 10 Salx val NWC Inc NWC FCF Gain Tax Salx CF NET PRESENT VALUE Disc fact PVA NPV