show eqns and calc.

these questions are from Part 4

(1.5 points) An economist for the company you work for has developed three scenarios for the economy over the next 10 years and you have been asked to create a bar chart similar to the one below for the project in problem 4 . Use the detail for the three scenarios to calculate the NPV and create the bar graph. If a value is not listed use the base value in problem 4. 4) (20 points) The company you work for is considering investing in a new product line. The important information for this investment is listed below. What is the yearly cashllow for the 10 year period of the analysis? - Year 1 sales volume 5,000 units/year - Increase in sales volume for years 2 through 10 is 5%/y ear - Sales price $50/ unit - Labor cost $10/ unit - Matcrial Costs $2/ unit - Overhead (or operating) costs $50,000 per year - Initial investment in machinery $200,000 depreciable using 5 ycar MACRS - The machinery can be sold in year 10 for $10,000 - Tax rate 28\% 5) (5 points) What is the payback for the project in problem 4 ? Net present value 6) (5 points) What is the Net Present Value for the project in problem 4 using 10% discount rate? Is this a good investment? Internal rate of return 7) ( 5 points) What is the Internal rate of return for the project in problem 4? At 10% Minimum Attractive Rate of Return (MARR) is this a good investment