Complete the stups below using cell references to given data or previows calcwlations, In some cases, a stample cell reference is all you need To copypaste a formula across a row or down a coltom, an absolute cell reference or a mixed cell neferance may be preferred if a spocifle Arcel finerion is to be used, the directions will specify the wse of that fimction. Do not type in mumerical data into a cell ar finction Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below In all cases, untess otherwise diructed, use the earliest appearance of the data in your formulas, urwally the Grven Data section You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fller manufacturing. Your boss comes into your office, deops a consultant's report on your desk, and complains, "We owe these consultants $1 mithon for thits report, and I am not sure their analysis makes sense. Before we spend the $25 million on new equipment necded for this project, look it over and give me your opivion. You open the report and find the following estimates (in thousands of dollars): All of the estimates in the report seem correct. You note that the consurtants used surangn-mo ucpectuvu aun ed today (year 0), which is what the accoumting department recommended They also calculated the depreciation assuming no salvage value for the equpment, which is company's assumption in this case. The report concludes that because the project wall increase earnings by 35.925 millon per year for 10 years, the project is worth $59.25 milion. You think back to your glory days in finance class and realee there is more work to be donel First, you note that the consultants have not included the fact that the project will require $10 milbon in working capital up fromt (year 0 ), which will be fully recovered in year 10. Next, you see they have aftributed $2 milgon of seling. general, and admatistrative expenses to the project but you know that $1 mallion of this amount is overhead that wall be incurred even if the preject is not accepted Finally, you know that acceunting earnings are not the right thing to focus on? a. Given the avalable information, what are the free cash flows in years 0 threugh 10 that should be used to evaluate the proposed project? b. If the cost of capital for this project is 14%b, what is your estimate of the value of the new project? at une vame at per new friphet? Complete the stups below using cell references to given data or previows calcwlations, In some cases, a stample cell reference is all you need To copypaste a formula across a row or down a coltom, an absolute cell reference or a mixed cell neferance may be preferred if a spocifle Arcel finerion is to be used, the directions will specify the wse of that fimction. Do not type in mumerical data into a cell ar finction Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below In all cases, untess otherwise diructed, use the earliest appearance of the data in your formulas, urwally the Grven Data section You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fller manufacturing. Your boss comes into your office, deops a consultant's report on your desk, and complains, "We owe these consultants $1 mithon for thits report, and I am not sure their analysis makes sense. Before we spend the $25 million on new equipment necded for this project, look it over and give me your opivion. You open the report and find the following estimates (in thousands of dollars): All of the estimates in the report seem correct. You note that the consurtants used surangn-mo ucpectuvu aun ed today (year 0), which is what the accoumting department recommended They also calculated the depreciation assuming no salvage value for the equpment, which is company's assumption in this case. The report concludes that because the project wall increase earnings by 35.925 millon per year for 10 years, the project is worth $59.25 milion. You think back to your glory days in finance class and realee there is more work to be donel First, you note that the consultants have not included the fact that the project will require $10 milbon in working capital up fromt (year 0 ), which will be fully recovered in year 10. Next, you see they have aftributed $2 milgon of seling. general, and admatistrative expenses to the project but you know that $1 mallion of this amount is overhead that wall be incurred even if the preject is not accepted Finally, you know that acceunting earnings are not the right thing to focus on? a. Given the avalable information, what are the free cash flows in years 0 threugh 10 that should be used to evaluate the proposed project? b. If the cost of capital for this project is 14%b, what is your estimate of the value of the new project? at une vame at per new friphet