Recovery Year	3-Year	5-Year	7-Year
1	0.3333	0.2	0.1429
2	0.4445	0.32	0.2449
3	0.1481	0.192	0.1749
4	0.0741	0.1152	0.1249
5		0.1152	0.0893
6		0.0576	0.0893
7			0.0892
8			0.0446

Input
Project Life (years)	4
Equipment	$550,000
Initial Increase NWC	$28,000
Salvage Value (Econ)	$45,000
Cost Savings Year 1	$250,000
Cost Savings Year 2	$150,000
Cost Savings Year 3	$75,000
Cost Savings Year 4	$75,000
Tax Rate	40%
WACC	12.00%

		0.2	0.32	0.192	0.1152
Year	0	1	2	3	4
Equipment
Increase NWC
Sales
Cost Savings
Dep
EBIT/EBT
Taxes
NI
OCF
SV (After Taxes)
Return NWC
FCF
Payback
		Model Decision	Explanation
PB =
NPV =
IRR =
Max. Equip Cost =
Overall Decision:
Explain:

Please answer in Excell

Excel Problem I Show All Excel Work (30 Points) Ceramics Corp. (CF) is considering a four-year project to improve its production efficiency. The initial analysis identified a machine that currently cost $550,000. CF plans to increase NWC $28,000 which will be recovered at the end of the project. The pre-tax cost savings vary per year and are listed in the input table. The system falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $45,000. CF's tax rate is 40 percent and its cost of capital is 12 percent. CF requires a payback of 4 years or less for this type of project. What is the Payback for the project? Based on this model, should CF purchase the equipment? Why? (5 Points) What is the NPV for the project? Based on this model, should CF purchase the equipment? Why? (7 Points) What is the IRR for the project? Based on this model, should CF purchase the equipment? Why? (5 Points) What is the highest price CF will pay for the machine? I am asking for the breakeven cost of the machine. (7 points) Should CF buy and install the system? ( 3 points) Explain your decision. ( 3 points) Please enter you answers in the appropriate light green cells