Project $1$ Calculations must be done in Excel You must create your own spreadsheet $($do not copy and paste someone elses$).$ This question should be done using Method $1$ as outlined in lecture $6($i$.$e$.$ Tax Effects, then Cash Flows then NPV$).$ Happy corporation projects their future unit sales for a new headphone. The projected unit sales are as below. $12345$Unit sales$75000890001200009600060000$ To produce the headphones, the initial net working capital of $$2,000,000$ is required and additional net working capital is also required each year, which is $20\%$ of the projected sales increase for the following year. The net working capital will be recovered at the end of a project. In addition, the initial installation cost of the machine for production is $$21,000,000.$ The machine will be depreciated for tax purposes using straight$-$line depreciation with the useful life of $8$ years. Also, costs and unit price are as below. Fixed cost$$3,120,000$ per yearVariable cost$$285$ per unitPrice$$415$ per unit In five years, the machine can be sold for about $30\%$ of its acquisition cost. The tax rate is $30\%$ and the required rate of return is $15\%.$ Tasks$($a$)$ What is the NPV of the project? Explain and defend your processes, answer, and calculations clearly.$($b$)$ Assuming that the project can be repeated indefinitely, what is the NPV of the project? Suppose that there is another project with the NPV of $$4$ million and the NPV of $$6$ million. Which project would you choose, assuming that two projects are mutually exclusive and can be repeated indefinitely? Why? Explain and defend your processes, answer, and calculations clearly.

In excel