Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst, once again will examine the viability of this venture after $31$ failures.

A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost $$482,000$ and will last $9$ years, at which time they will have an estimated salvage value of $$21,000.$ However, a capital upgrade of $$91,000$ will be required at the end of five years. An inventory of spare parts $($working capital$)$ amounting to $$10,000$ will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Quixotic's previous ventures. The warehouse could be rented out at $$6,000$ per year.

This enterprise is expected to generate cash from the sale of electricity of $$143,000$ a year for $9$ years. Cash expenses for each of the $9$ years will be $$11,000.$

The company's tax rate is $27$ percent, the CCA rate is $6$ percent and the cost of capital is $20$ percent.

Requirements:

A$.$ Calculate the Net Present Value of the Windmill venture by completing the table below: $($You need a number for every cell in this spreadsheet$)$

$\backslash$table$[[$Event$,$Expected Cash Flow,After$-$tax Cash Flow,Present Value$],[$Enter cash recelpts as positive numbers, cash payments as negative numbers. Round all your answers to zero decimal places.$],[$Inital Investment,$-482000,-482000,-482000],[$Working Capital,$-10000,-10000,-10000],[$Revenues$,143000,90320,370768\mathrm{.}30],[$Expenses$,-11000,-8030,0],[$Opportunity Cost,$00,00,0],[$Capital Upgrade,$-91000,-91000,-36570\mathrm{.}86],[$Salvage$,21000,21000>,4069\mathrm{.}94],[\backslash$table$[[$Working Capital$],[$Revcovery$]],10000>,10000>,1938\mathrm{.}07],[$CCA Tax Shield,N$/$A$,$N$/$A$,31475\mathrm{.}40],[$Net present value,N$/$A$,$N$/$A$,-120319\mathrm{.}15]]$

B$.$ It's not worth any marks, but it helps with the marking: what number did you use for $($Cpv $-$ Spv$)?$

$461000$