For this activity, refer to the Surf Print Table & Floor Lamps example. Assume that sale price follows a lognormal distribution with mean of $48 and standard deviation of $4.80 and the variable production costs follow a lognormal distribution with mean of $20 and standard deviation of $2. Also, assume that the required rate of return follows a uniform distribution between 18% and 30%. What is the expected NPV? What is the probability that the NPV is less than zero? What variable is the NPV most sensitive to? Please show all work in excel.

Please show all work in excel.

Surf Print Table & Floor Lamps example below:

Unit sales 1^st year - 6,000

Price/ unit - $48

Growth Rate in sales - 8%

Networking Capital - $28,000

Annual fixed costs - $80,000

Variable cost/ unit - $20

Equipment Cost - $145,000

Useful life - 5

Tax rate - 34%

Required return - 25%

Time01 2 3 4 5

Unit Sales6,0006,480 6,998 7,558 8,163

Revenue$288,000$311,040$335,923$362,797$391,821

Fixed costs$80,000$80,000$80,000 $80,000$80,000

Variable costs$120,000$129,600$139,968$515,165$163,259

Deprecation$29,000$29,000$29,000$29,000$29,000

EBIT$59,000$72,440$86,955$102,632$119,562

Taxes$20,060$24,630$29,565$34,895$40,651

Net income $38,940 $47,810 $57,390 $67,737 $78,911

Operating cash flows$67,940 $76,810 $86,390 $96,737 $107,911

Investments:

Initial outlay$(145,000)

Networking capital $(28,000)$28,000

Total cash flows $(173,000)$67,940$76,810 $86,390 $96,737 $135,911

NPV$58,901

Please show all work in excel.