Question: Hello, please help me to answer these 2 questions a and b with Excel including formulas. Thank you so much!!! . 10. (Cash-flow analysis) The

 Hello, please help me to answer these 2 questions a and

Hello, please help me to answer these 2 questions a and b with Excel including formulas. Thank you so much!!!

. 10. (Cash-flow analysis) The "Less Is More" company manufactures swimsuits. The company is considering expanding to the bathrobe market. The proposed investment plan includes: Purchase of a new machine: The cost of the machine is $150,000, and its expected life span is 5 years. The machine will be depreci- ated to zero salvage value, but the chief economist of the company estimates that it can be sold for $20,000 at the end of 5 years. Advertising campaign: The head of the marketing department esti- mates that the campaign will cost $80,000 annually. Fixed costs: Incremental fixed costs of the new department will be $40,000 annually. Variable costs: First-year variable costs are estimated at $30 per bathrobe, but due to the expected increase in labor costs, they are expected to rise at 5% per year. Price per bathrobe: Each of the bathrobes will be sold at a price of $45 at the first year. The company estimates that it can raise the price of the bathrobes by 10% in each of the following years. The Less Is More" discount rate is 10%, and the corporate tax rate is 36%. a. What is the break-even point of the bathrobe department (what is the minimal number of units it needs to sell so the expansion is profitable)? b. Plot a graph in which the NPV is the dependent variable of the annual production . 10. (Cash-flow analysis) The "Less Is More" company manufactures swimsuits. The company is considering expanding to the bathrobe market. The proposed investment plan includes: Purchase of a new machine: The cost of the machine is $150,000, and its expected life span is 5 years. The machine will be depreci- ated to zero salvage value, but the chief economist of the company estimates that it can be sold for $20,000 at the end of 5 years. Advertising campaign: The head of the marketing department esti- mates that the campaign will cost $80,000 annually. Fixed costs: Incremental fixed costs of the new department will be $40,000 annually. Variable costs: First-year variable costs are estimated at $30 per bathrobe, but due to the expected increase in labor costs, they are expected to rise at 5% per year. Price per bathrobe: Each of the bathrobes will be sold at a price of $45 at the first year. The company estimates that it can raise the price of the bathrobes by 10% in each of the following years. The Less Is More" discount rate is 10%, and the corporate tax rate is 36%. a. What is the break-even point of the bathrobe department (what is the minimal number of units it needs to sell so the expansion is profitable)? b. Plot a graph in which the NPV is the dependent variable of the annual production

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