Question: Do not use excel please A project requires an initial fixed asset investment of $400,000, which will be depreciated straight- line to 10,000 over the

Do not use excel please Do not use excel please A project requires an initial fixed asset

A project requires an initial fixed asset investment of $400,000, which will be depreciated straight- line to 10,000 over the 6-year life of the project. The pretax estimated selling price of the fixed assets at the end of the project is estimated to be $50,000. Projected sales volume for each year of the project is shown below. The sale price is $50 per unit, and variable costs are $35 per unit. A $10,000 initial investment in net working capital is required with total net working capital needed equal to 5% of sales during years 1 through 6. Variable costs are $35 per unit, and fixed costs are $50,000 per year. The firm has a required return on investment of 12%, and a tax rate of 35%. Year sales Volume 2 3 4. 5 6 15,000 17,000 17,000 17,000 25,000 25,000 4. What is the addition(s) to NWC during year 4 of the project? a. What is the NPV of this project?(I realize it's a big problem, but it will help you review the whole chapter)

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