a. Develop a spreadsheet model, and use it to find the project's NPV. PI and MIRR. Key Output: Part I. Input Data NPV - MIRR- PI Equipment cost Net WC/Sales First year sales (in units) Sales price per unit Variable cost per unit Nonvariable costs $16,500 14% 1.550 $34.00 $29.00 $1,700 Market value of equipment at Year 4 Tax rate WACC Inflation $2.500 21.0000% 7.0000 3.0000" Part 2. Depreciation and Amortization Schedule Year Initial Cost Years 2 4 Accumulated Depreciation 20.0% 32.0% 19.0% 12.0% Equipment Equipment Deprin Rate MACRS Equipment Depr'n, Dollars Ending Book Value: Coht - Accumulated Depreciation Part 3. Net Salvage Values, in Year 4 Estimated Market Value in Year 4 Book Value in Year 4 Expected Gain or Loss Taxes paid or tax credit Net cash flow from salvage 3 Part 4. Projected Net Cash Flows (Time line of Annual Cash Flows) Years Investment Outlays af Time Zere: Equipment Operating Cash Flames over the Projeer's Life: Units sold Sales price increased by inflation) Variable costs (increased by inflation) Sales revenue Variable costs Fixed operating costs (increased by inflation) Depreciation (equipment) Operating income before taxes (EBIT) Taxes on operating income (21%) After-tax operating income Add back depreciation Operating cash flow Terminal Year Cashe Fees: Required level of net working capital Required investment in NWC Terminal Year Cash Flows: Net salvage value Net Cash Flow (Time line of cash flows) a. Develop a spreadsheet model, and use it to find the project's NPV. PI and MIRR. Key Output: Part I. Input Data NPV - MIRR- PI Equipment cost Net WC/Sales First year sales (in units) Sales price per unit Variable cost per unit Nonvariable costs $16,500 14% 1.550 $34.00 $29.00 $1,700 Market value of equipment at Year 4 Tax rate WACC Inflation $2.500 21.0000% 7.0000 3.0000" Part 2. Depreciation and Amortization Schedule Year Initial Cost Years 2 4 Accumulated Depreciation 20.0% 32.0% 19.0% 12.0% Equipment Equipment Deprin Rate MACRS Equipment Depr'n, Dollars Ending Book Value: Coht - Accumulated Depreciation Part 3. Net Salvage Values, in Year 4 Estimated Market Value in Year 4 Book Value in Year 4 Expected Gain or Loss Taxes paid or tax credit Net cash flow from salvage 3 Part 4. Projected Net Cash Flows (Time line of Annual Cash Flows) Years Investment Outlays af Time Zere: Equipment Operating Cash Flames over the Projeer's Life: Units sold Sales price increased by inflation) Variable costs (increased by inflation) Sales revenue Variable costs Fixed operating costs (increased by inflation) Depreciation (equipment) Operating income before taxes (EBIT) Taxes on operating income (21%) After-tax operating income Add back depreciation Operating cash flow Terminal Year Cashe Fees: Required level of net working capital Required investment in NWC Terminal Year Cash Flows: Net salvage value Net Cash Flow (Time line of cash flows)