Project B: create a spreadsheet $-$ please explain how you calculated your numbers a and if you accept or reject the project aand why.

This project requires an iInitial investment of $$2,000,000$ in equipment which will cost an additional $$100,000$ to install. The firm will use the attached MACRS depreciation schedule to expense this equipment. Once the equipment is installed, the company will need to increase net working capital by $$70,000.$ The project will last $6$ years at which time the market value for the equipment will be $$50,000.$

The project will project a product with a sales price of $$40\mathrm{.}00$ per unit and the variable cost per unit will be $$15\mathrm{.}00.$ The fixed costs would $ be $$150,000$ per year. Because this project is not close to current products sold by the business, management wants adjust the risk profile of this analysis by imposing a $2$ percentage point increase over the firm's WACC.

$\backslash$table$[[$Years$,2014,2015,2016,2017,2018,2019],[$Forecasted Units Sold,$50,000,60,000,70,000,80,000,90,000,80,000]]$