Student Work Area Required: Provide input into ces shaded in yellow in this template Use the NPV function with cell references to the wo area to calculate net present value the SUM function to add amounts, and mathematical formulas with cell references to the Problem or work area as indicated for other amounts E9.7-Using Excel to calculate NPV PROBLEM Metro industries is considering the purchase of new equipment to replace existing equipment that will be sold at the end of its fe During the period of its use the equipment will allow the company to produce and sell additional units. Information concerning the capital budgeting proposal follows 10 11 Putchase price of new equipment $1,500,000 12 Sening price of old equipment 150,000 13 Expected salvage value of new equpment 220 000 14 Additional anal faed costs to be incurred 80 000 Unit selling price of additional units 40.00 16 unst variable cost of additional units 22.00 Year Year 2 Year 3 Year 4 Years Year o Purchase of new equipment 5 1.500.000 Savage of old equipment Sales revenue Vanable costs Aditional fed costs Salvage of new equipment Cash flow Estimated seen years Expected additional units to be sold annually Discount rate 5 20,000 104 Te present value Do you recommend the investment No Calculate the net present Value of the proposed equipment purchase + Do y recommend that Metro industries invest in the new equipment? WW or why not? Why or why not? Enter Answer BER