With the following information:Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal yearProject and equipment life: 5 yearsSales: $25 million per year for five yearsAssume gross margin of 60% (exclusive of depreciation)Depreciation: Straight-line for tax purposesSelling, general, and administrative expenses: 10% of salesTax rate: 35%Use a WACC of 1%.Compute, cash flows, NPV and IRR of the project using the Excel spreadsheet. (Use the IRR financial function for the computation of IRR.)Submit an Excel Spreadsheet
.P4IP NPV-IRR full spreadsheet empty to instructor files-1.xlsx
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