Summer Tyme, Inc. has cash available and is considering a new three-year expansion project that requires an initial fixed asset investment of $35.25 million. The fixed assets will be depreciated straight-line to zero over its three-year tax life. The fixed assets will have a market value of $20,842,900 at the end of the project. The project is estimated to generate following revenues during those three years: $20,640,300 for year one, $24,450,221 for year two, and $28,155,015 for year three. Costs are equal to 60% of the same year sales. The project net working capital is equal to 7.5% of the next year's revenue. The tax-rate is 21%. What are the projects net cash flows for years 0-3? What is the IRR on this project?

Use available Excel template and complete using "best practices" (use formulas - no hardcoding in model). This means that every cell must be calculated inside of excel! Do not use your calculator and then just type in numbers. If you need help use the excel help function or youtube!

Revenue t=1 Revenue t=2 Revenue t=3 Investment Depr. years Final book value Fixed Asset Sale value NWC required Costs Tax rate SL $ 20,640,300 $ 24,450,221 $ 28,155,015 $ 35,250,000 3 $ $ 20,842,900 7.50% 60.00% 21.00% You may use positive or negative numbers in this section below in any consistent manner. Please make sure your Excel formulas are consistent and that your cash flow numbers are correct. Year 0 $ $ Year 1 20,640,300 $ 12,384,180 $ Year 2 24,450,221 $ 14,670,133 $ Year 3 28,155,015 16,893,009 Revenue Expenses Depreciation EBIT Taxes Net Income (NI) OCF $ $ $ $ $ $ $ NWC total Change in NWC Net Capital Spending CFFA Project IRR Revenue t=1 Revenue t=2 Revenue t=3 Investment Depr. years Final book value Fixed Asset Sale value NWC required Costs Tax rate SL $ 20,640,300 $ 24,450,221 $ 28,155,015 $ 35,250,000 3 $ $ 20,842,900 7.50% 60.00% 21.00% You may use positive or negative numbers in this section below in any consistent manner. Please make sure your Excel formulas are consistent and that your cash flow numbers are correct. Year 0 $ $ Year 1 20,640,300 $ 12,384,180 $ Year 2 24,450,221 $ 14,670,133 $ Year 3 28,155,015 16,893,009 Revenue Expenses Depreciation EBIT Taxes Net Income (NI) OCF $ $ $ $ $ $ $ NWC total Change in NWC Net Capital Spending CFFA Project IRR