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please workout in excel! Frozen Inc. is considering selling a new type of Olaf toy over the next five years. The industrial equipment necessary to

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Frozen Inc. is considering selling a new type of Olaf toy over the next five years. The industrial equipment necessary to produce the toy is expected to cost 3,000,000 to purchase and another 1,000,000 to install. The equipment classifies as a 5-year MACRS with no bonus depreciation. The form has conducted $500,000 worth of market research to better understand the industry and their research estimated that the proposed project would sell 1,000,000 1,600,000, 1,800,000, 1,900,000, and 950,000 units respectively across the 5 years. It is expected that the equipment will sell for $20 in year 1, $17.75 in year 2, and $17.25 in years 3. $17.00 in year 4 and $17.25 in year 5. The variable cost per unit to produce the equipment is expected to be $15 in year 1 and then decline by 5% per year. Fixed costs are estimated to be $4,000,000 per year. The project expects to require an initial investment of $600,000 in net working capital and then 30% of sales is expected to meet the needs of net working capital for each subsequent year. At the end of the project, it is estimated that the industrial equipment used to produce the exercise equipment can be sold for 5% of the equipment's purchase price. The firm has a 10% required rate of return and has a 21% marginal tax bracket. What is the NPV and IRR of this project? Should this project be accepted? FCF Year O Check Figure: -4,600,000.00 FCF Year 1 Check Figure: -4,442,000.00 FCF Year 5 Check Figure: 10,570,472.89

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