Solar Wind is considering a new project. The project will require $325,000 for new fixed assets and $195,000 for additional inventory. Long-term debt is expected to increase by $300,000. The project has a 5-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 25% of their original cost. All inventory is expected to be recovered at the end of the project. The project is expected to generate annual sales of $565,000 and costs before depreciation of $302,000. The tax rate is 35%, and the required rate of return is 15%. The company has other ongoing profitable operations.

In the field specified below, provide your answer to the following question:

What is the MIRR of the project?

For any credit, show all work in your Excel worksheet.

In a new Excel worksheet,

a) Answer the questions below and

b) Place the company name at the top of the page.

c) Use this information above to answer the following five questions.

Show all inputs and steps that you used to arrive at your answers. Label each answer according to the question #. ie, indicate clearly on your worksheet which section and input answer Question 1, Question 2, etc.

Question 1: What is the initial outlay for the project?

Question 2: What is the operating cash flow for each year of the project?

Question 3: What is the amount of the terminal value (ie not including the operating cash flow) that occurs in the last year of the project life?

Question 4: What is the NPV and MIRR of the project?

Question 5: Would you accept the project? Explain?

SHOW ANSWER ON EXCEL AND TEACH ME HOE TO DO IT.WHAT FUNCTIONS WERE USED