Wellness brewery machines (WBM henceforth) is a maker of machines which are used to produce beer. WBM considers the development of a new machine, called ExtraDry, that will make beer extra dry.

Your job is to estimate net present value of this project. Following information is given.

The sales forecast for Extradry is 100 units per year.

The product will have a four-year life.

It will be sold with an expected price of 5 million.

The cost of producing these units is 3 million.

WBM expects to spend 40 million per year on marketing and support for this product.

Costs of development of this machine is 300 million, and will be expensed before the launch of products.

WBM must install new equipment that will require an upfront investment of 150 million, and this investment will be depreciated over five years using straight line method.

Receivables are 16.6% of (annual) sales revenue.

Payables are 16.6% of (annual) cost of sales.

Cost of capital is 10%.

Estimate an incremental NOPLAT of WBM associated with this project from years 0 to 5, then estimate an incremental operating cash flow of WBM associated with this project from years 0 to 5.

***Please show your work by copying and pasting cells of your spread sheet***