Complete a capital budgeting Excel spreadsheet solution based on:

Cost of new equipment $14,800,000

Shipping and installation 200,000

Unit sales

Year 1: 70,000

Year 2: 120,000

Year 3: 120,000

Year 4: 80,000

Year 5: 70,000

Sales price = $300 / unit in years 1-4 and $250/unit in year 5 Variable cost = $140 / unit Fixed cost = $700,000 per year for all 5 years

Working capital : $200,000 at start of project, recovered at end Depreciation = straight line over 5 years Tax rate = 34% Cost of capital = 15%

Specifically: Lay out the cash flows for years 1-5

Calculate the project NPV

Calculate the project IRR