Hi,

I need help understanding this in excel. Please use numbers and not cell references if possible.

Question 3:
The following estimates and assumptions have been provided for a project a company is considering to invest in:
Estimate/Assumption	Amount	Explanation
Initial investment ($ thousands)	20 750	invested at time 0, fully depreciated based on straight line method over the 6 years
Salvage value ($ thousands)	3 250	to be released at the end of year 6 (not a year later like class exercise)
Initial revenues ($ thousands)	15 750	assumed to be received at the end of the first year, then increasing by inflation
Project length (years)	6
Variable costs (% of revenues)	40,00%
Initial fixed costs ($ thousands)	6 600	assumed to be increasing by inflation for the enxt years
Initial total expenses ($ thousands)	12 900
Inflation rate (%)	5,30%	initial revenues, variable costs and fixed costs to be increased by this rate
Discount rate (%)	12,70%
Receivables (% of sales)	12,50%	calculated based on the sales (revenues) of the same period
Payables (% of variable costs)	16,67%	calculated based on the variable costs of the same period
Inventory (% of next year's costs)	14,60%	calculated based on the next year's total costs (variable and fixed)
Tax rate (%)	20,00%
(a) Calculate the NPV of the project given the assumptions and estimates above.
(b) Calculate the (accounting) break-even level of revenues for this project.
(c) Calculate the project's NPV break-even level of (initial) revenues.