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with formulas please!!!!!!!! Thank you so much Universal Farm Supply's management team has observed that the company can sell as much fertilizer as it can

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Universal Farm Supply's management team has observed that the company can sell as much fertilizer as it can stock. They are considering purchasing a forklift and additional warehouse space to stock more fertilizer. The forklift costs $89,000 and will be depreciated to a salvage value of $0 in 8 years even though it is expected to last the life of the project. The additional warehouse space costs $129,000 and will be depreciated to a salvage value of $35,000 over 13 years. At the end of that year the project will be wound down, and the warehouse and forklift will be sold for an estimated $28,000. If the forklift and warehouse space are purchased it will allow Universal to sell an additional 1,300,000 pounds of fertilizer annually. Universal sells fertilizer for $0.58 per pound, and it costs $0.48 per pound. The increase in sales will require an additional $36,000 in Net Working Capital. Universal's marginal tax rate is 20%, and the required return for this project is 15%. Fill in all the missing information to project the cash flows for Universal's proposed expansion Forklift Warehouse 89,000 X 129,000 X 35,000 8 13 X X Y Cost Salvage Value Life Depreciation Scrap Value Change in NWC Sales Increase Price per Pound Cost per Pound Profit per Pound Tax Rate Required Return 28,000 36,000 1,300,000 0.58 0.48 X 20% 15% One Time CFS Profits Depreciation Taxes After Tax CFS PV Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 What are the net present value and internal rate of return for the expansion? Should Universal expand? NPV IRR Expand

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