Get Away Corporation is considering whether to launch its new Oracle Recreation Vehicle (RV). The selling price will be $90,000 per RV. The variable costs will be about half that, or $48,000 per RV, and fixed costs will be $665,000 per year. Beginning in year three (3) the variable costs are expected to decline by 3% each year due to the learning curve effect.

The total upfront investment needed to undertake the project is $4,100,000. This amount will be depreciated straight-line to zero over the 7-year life of the equipment. Assume there is $0 saleable value of the equipment at the end of its useful life and there are no working capital requirements. Get Away has a required return of 12 percent on new projects and has a tax rate of 25%.

Please show all your work in a spreadsheet. All totals should be formula based (i.e. PV, NPV, Total Cash Flow, etc)

Please provide/calculate the following:

• The NPV, IRR, MIRR and Payback length of the project for 50 units sold (For MIRR use a reinvestment rate of 5%)
• Solve for Units that produce Financial Breakeven
• Solve for the units that provide you with an MIRR of 12%