Complete this problem within Excel

This project involves a new type of widget. We think we can sell 6,000 units of the widget per year at a price of $950 each. Variable cost will run about $400 per unit and the producr should have a four-year life.

Fixed costs for the project will run $450,000 per year and we will need to invest a total of $1,200,000 in manufacturing equiptment. The equiptment will be depreciated using MACRS over seven years. In year four, the equiptment will be worth hald of what we paid for it.

We will invest $1,150,000 in net working capital at the start. After that, net working capital requirements will be 25% of sales. Assume a 34% tax rate.

The MACRS Table is below:

Year	MACRS %
1	14.29%
2	24.49%
3	17.49%
4	12.49%

Prepare a pro forma income statement for each year. Then calculate OCF. Draw this on a time line. Then calculate NPV assuming a 28% required return.