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show your work not in excel You are a financial manager for a local fried chicken restaurant called Los Pollos Hermanos. Your boss, Gus Fring,

show your work not in excel
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You are a financial manager for a local fried chicken restaurant called Los Pollos Hermanos. Your boss, Gus Fring, had a recent influx of cash (do not ask from what!) and wants to buy a new portable deep fryer for the business. The portable deep fryer will allow Gus to expand his business by offering catering services. Before he invests in the fryer, he wants you to estimate and analyze the cash flows associated with the purchase. He has provided you with the following information: He spent $1,000 researching fryers The new fryer will cost $20,000 Shipping and installing the fryer will cost an additional $3,000 The fryer will be depreciated using the straight-line method over 5 years The variable expenses associated with one piece of chicken are $0.22 Each piece of chicken is sold for $1.00 The catering service will sell 10,000 pieces of chicken in Year 1; 20,000 in Year 2; and 30,000 in Years 3, 4, and 5. After Year 5, the fryer will be sold to a scrap yard for $1,000 There is a $500 increase in interest expense from issuing new bonds Net working capital will increase $1,000 in Year O, but this can be recouped at the end of Year 5 The tax rate is 30% Inflation is 2% per year The weighted average cost of capital (i.e. discount rate) is 11% Based on this information, answer the following questions: 1) What are the cash flows associated with this project for Years Othrough 5? 2) What is the project's NPV, IRR, and Payback Period

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