The Company is considering a new turkey farm to service its Western region stores. Stores currently require 900,000 turkeys per year at a cost of $10 per bird. The managers believe their new farm will reduce the cost per bird to $7.50 while maintaining the average selling price of $13 per bird. Shipping costs will increase from $1 to $1.50 per bird. Inventory should increase by $150,000 live turkeys. In addition , the cost of labor will increase by $500,000 per year. It will cost $2,000,000 to purchase land and $1,500,000 to construct buildings and equipment. Buildings and equipment are depreciated for the straight line method. After 7 years, the firm expects to sell the land for $1,500,000 and the building and equipment at their salvage value of $600,000. The firms' marginal rate of tex is 40 %

Using Excel!!!!!!

1. Calculate the annual after-tax cash flow of the initial outlay (IO) for each year (ACF) and the terminal cash flows (TCF) for this project.

2. If the WACC is 12%, answer the following questions:

- 3. Calculate the payback period

- 4. Calculate the discounted payback period.

- 5 Calculate the NPV

-6 Calculate IP

-7. Calculator the TIR

-8 Calculate MIRR