ANSWER ONLY IN EXCEL AND SHOW FORMULAS AND PROCEDURES. NO HARDCODED NUMBERS

the problems 1-5, begin by assuming you have Unit Sales: 8275 Sales Growth Rate, years 1-4 0.07 inflation rate: 0.02 Real Cost of Capital : 0.11 Tax Rate: 0.22 Sales Revenue/Unit: 10.79 Variable Cost/Unit: 7.23 Cash Fixed Costs: 8576 Investment: 50271 .

Problem 1: What are the projected unit sales in year 7 if sales are expected to increase by 12% in year 5 and then decrease by 21% in years 6 and 7

Problem2Assuming sales revenue per unit, variable cost per unit, and cash fixed costs all increase by the rate of inflation what is your projected gross margin in year 7?

Problem 3

What is the net present value of this project?

Problem 4: After you conduct your initial analysis, you discover that the firm has the option to abandon the project and sell specialized equipment at the end of year 8 for $4189.25 what is the new npv of the project?

Problem 5: Your boss is apprehensive about your worksheet and your estimation of this projects NPV THIS LOOKS LIKE A JOB FOR SOLVER you blunt out, only out that your boss bought a version of Excel that does not include the add-in. By changing the unit sales of your existing model as it stands from the prior problem (i.e., assuming the option to abandon from #4 is exercised, basically DO NOT REVERT YOUR ANSWER BACK BEFORE COMPLETING THE PROBLEM) find the number of unit sales needed in year 1 to give you an NPV of 0.