Use NPV function to compute (Excel)??? ---- Correct answer is 233,958.25

X Calculating NPV - Excel Sign In FILE DATA E INSERT PAGE LAYOUT FORMULAS REVIEW VIEW Arial 12 A A Cell Formatting as Table Styles Cells Editing A Alignment Number Conditional Format Paste IU Clipboard Font Styles D34 fox F I 1 2. Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated on a three-year MACRS schedule. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 3 4 5 $ 2,900,000 2,190,000 815,000 6 Asset investment Estimated annual sales $ $ 7 Costs Net working capital $ 9 300,000 $ 210,000 10 Pretax salvage value 11 Tax rate 21% 12 Project and asset life 13 Required return MACRS percentages Year 1 3 12% 14 15 0.3333 0.4445 16 Year 2 17 Year 3 0.1481 18 19 Complete the following analysis. Do not hard code values in your calculations. You must use 20 the built-in Excel function to calculate the NPV. 21 2,190,000.00 $ 2,190,000.00 $ 815,000.00 22 2,190,000.00 815,000.00 Sales Costs 23 815,000.00 24 Depreciation 966,570.00 1,289,050.00 429,490.00 945,510.00 198,557.10 746,952.90 25 $ 408,430.00 $ 85,770.30 322,659.70 $ 85,950.00 $ T Taxes 26 18,049.50 $ 67,900.50 $ 27 Net income 28 29 Fixed asset book value in three years $ 30 214,890.00 31 Aftertax salvage value 32 Sell equipment $ 210,000.00 1,026.90 211,026.90 33 34 xes $ 35 Aftertax cash flow 36 $ (2,900,000.00) (300,000.00) $ 37 $ Capital spending Net working capital 211,026.90 38 300,000.00 1,356,950.50 $ 1,356,950.50 $ 1,289,229.70 $ 4645654 $ 1,176,442.90 39 OCF $ 40 Net cash flow (3,200,000.00) 1,687,469.80 41 42 NPV 43 Sheet1 READY 70% Attempt(s) 3/3 Hint Step: The NPV is calculated using the NPV function