Using relevant data provided about the Antibacterial Soap Project below, prepare a cash flow table (using the Excel formulas), and calculate the NPV. IRR,PVI.and discounted payback period.

AB-CLEAN Ltd is planning to invest in a new antibacterial soap (AB99) project that requires equipment with a purchase price of $96,000.The installation cost of $5,000 for the soap-producing equipment would be paid by the supplier. The transportation cost for the equipment would be $12,000.The machine will have an economic life of six years and would be depreciated at 11percent straight line for the tax purpose. The salvage value of the equipment is estimated to be $16,000 at the end of the project life.

Starting production with this machine requires an additional investment of $32,000 inventory and $13,000 in accounts receivable. Whereas, there would be additional accounts payable of $24,000.

In order to analyse the effectiveness of the AB99 soap to kill germs,the management has spent $12,000 for clinical tests.The tests revealed that the AB99 soap uses harmful chemical(triclosoan and triclorcarbon) as the main ingredients and these can be linked to health hazards and environmental damages. Despite the adverse outcomes of the tests,the management has decided to go for the production. Expected sales in the first year would be $98,000. Sales are expected to grow at 25% in each year until the 6th year.

Costs have been estimated to be 48 percent of sales revenue.In addition,there would be an annual fixed overhead cost of $8,403 .

If the project is started,the regular annual net earnings of $7,000 of the company from the same production facility would be stopped. This new project will increase the annual interest expense from $7,000 to $9,200. Whereas,due to the start of the project,annual sales of the company's body wash will increase by $16,000 in the first year and that increased sales will further grow by 6 percent in each year until the 6th year. The cost of sale for the body wash products is 40 percent.

Applicable corporate tax rate would be 32 percent.

The cost of capital is estimated to be either 11.25 percent or 17.14 percent. The management has targeted a discounted payback period of four years.

What would be your decision about this project at 11.25 and 17.14 percent costs of capital?

What would be your comment in recommending this project considering qualitative factors?

Please show your workings in excel including the formula, thank you.