Step 1: Direct labor, materials, selling expenses, and other variable costs are forecast to be $5.20, $3.70, $2.30, and $0.80, respectively in year 1 and grow with inflation. Lease payment, property taxes, administration, advertising, and other cash fixed costs are expected to be $4,100, $730, $680, $1,120, and $730, respectively in year 1 and grow with inflation. What are the Total Variable Cost per Unit and Total Cash Fixed Costs?

Step 2: Consider the same problem as in Part II, but make the following modifications: Suppose we additionally assume that the project will require working capital in the amount of $1.23 in year 0 for every unit we expect to sell in year 1. Further, working capital needs will grow with inflation going forward. What is the project NPV?

Please solve using excel