ANSWER USING AN EXCEL SPREADSHEET AND SHOW EXCEL FORMULAS PLEASE

Chicago Turkey is considering a new turkey to service its western region stores. The stores currently require $650,000$ turkeys per year, and they are purchased from various local turkey farms for an average price of $$8$ per bird. The managers believe that their new farm would lower the cost per bird to $$7,$ while maintaining the average selling price of $$12$ per bird. However, due to the centralized structure of this operation, shipping expenses will increase to $$1\mathrm{.}25$ per bird from the current $$1\mathrm{.}00.$ The firm will need to increase its inventory of live turkeys by $$45,000.$ It will cost $$200,000$ to purchase the land and $$350,000$ to construct the buildings and purchase equipment. In addition, labor expenses will rise by $$250,000$ per year. The buildings and equipment will be depreciated using the straight$-$line method over five years to a salvage value of $$100,000.$ After five years, the company will sell the farm for $$300,000($$$100,000$ for the buildings and equipment, $$200,000$ for the land$).$ The firm$$s marginal tax rate is $25\%.$ Note that land is not depreciable.

Calculate the initial outlay, after$-$tax cash flows, and terminal cash flow for this project.

If the WACC is $12\%,$ calculate the payback period discounted payback period, NPV$,$ PI$,$ IRR, and MIRR.

Management is uncertain about several of the variables in your analysis and has asked you to provide three different scenarios.

Create a scenario analysis showing the profitability measures for this investment using the information in the table above $($note: The salvage value of the buildings is the actual forecasting salvage value, not that used for depreciation$)$