how would part d and e be done with the statement and numbers given

F G H 5 6 $96,000,000 $73,500,000 $6,720,000 $15,780,000 $2,520,000.00 $85,000,000 $73,500,000 $0 $11,500,000 $0.00 $85,000,000 $73,500,000 $0.00 $11,500,000.00 $0.00 $6,639,000 A B c D E 1 Year 1 2 3 2 13 Revenue $112,000,000 $112,000,000 $112,000,000 4 Operating costs $73,500,000 $73,500,000 $73,500,000 de 5 Depreciation $36,960,000 $50,400,000 $16,800,000 6 Income before Tax $1,540,000 ($11,900,000) $21,700,000 7 Taxes/Net Income 37.50% $13,860,000.00 $18,900,000.00 $6,300,000.00 8 9 Operating cash flow $50,820,000.00 $69,300,000.00 $23,100,000.00 10 11 Recovery of WCA after tax 12 (6639000"(1-37.5%) 13 14 Total cash flow $50,820,000.00 $69,300,000.00 $23,100,000.00 D5415 SC 16 9.50% 1 0.905 0.81 17 18 NPV $121,713,566.01 $135,931,086.67 $100,387,285.02 19 $9,240,000.00 $0.00 $0.00 $4,149,375.00 0.625 $9,240,000.00 $0.00 $0.00 0.715 0.62 0.525 $78,087,780.89 $62,979,020,56 $62,979,020,56 D. Your boss would also like to know just how sensitive the NPV of the project is to operating costs. What is the highest annual operating cost increase associated with the project that would result in a positive NPV? (HINT: Find the answer using the "Goal Seek" function in Excel. Solve for the operating cost that sets NPV to $1. If your NPV cell is in units of thousands, an NPV of $1 would be shown as $0.001 in the spreadsheet, meaning that you'll need to change the format to $x.xxx.) All other assumptions are as in Part C. Name this spreadsheet EBAY-D. E. For the final spreadsheet, change annual operating costs back to $73.5 million. Then, find the IRR of the project using "Goal Seek." (HINT: Solve for the cost of capital that sets the NPV to zero.) All other assumptions are as in Part D. Save as EBAY-E. The cost of capital cell should be highlighted yellow with the cost that generates a $0 NPV. That is the definition of IRR-it's the WACC that produces a zero NPV. cha doll The company eBay (ticker: EBAY) is considering installing a new and highly sophisticated computer system to help expand its business, which would cost $75 million. Delivery and installation would add another $1.2 million to the initial cost. The new computer system has a 5-year class life under MACRS. Because of the half-year convention, it will take six years for eBay to fully depreciate the cost of the system (MACRS percentages: 20, 32, 19, 12, 11 and 6 percent), and at the end of Year 6 the salvage value of the system is estimated to be $6.XXX million, where XXX are the digits found in your KU email address. Additional data: If the new system is purchased, revenue is expected to increase over the present level by $112 million in each of the first three years, by $96 million in Year 4, and by $85 million in Years 5 and 6. The increase in operating costs is projected at $73.5 million for each of the six years. > eBay's federal-plus-state income tax rate is 37.5 percent. The project's cost of capital is 9.5 percent It is expected that installation of the new system would cause the following changes in working capital accounts (1) an increase in receivables of $27 million because of expanded services, (2) an increase in inventories of $6.5 million, and (3) an increase in accounts payable and accruals combined equal to $7.5 million. -> Trinn Fynal do the follow F G H 5 6 $96,000,000 $73,500,000 $6,720,000 $15,780,000 $2,520,000.00 $85,000,000 $73,500,000 $0 $11,500,000 $0.00 $85,000,000 $73,500,000 $0.00 $11,500,000.00 $0.00 $6,639,000 A B c D E 1 Year 1 2 3 2 13 Revenue $112,000,000 $112,000,000 $112,000,000 4 Operating costs $73,500,000 $73,500,000 $73,500,000 de 5 Depreciation $36,960,000 $50,400,000 $16,800,000 6 Income before Tax $1,540,000 ($11,900,000) $21,700,000 7 Taxes/Net Income 37.50% $13,860,000.00 $18,900,000.00 $6,300,000.00 8 9 Operating cash flow $50,820,000.00 $69,300,000.00 $23,100,000.00 10 11 Recovery of WCA after tax 12 (6639000"(1-37.5%) 13 14 Total cash flow $50,820,000.00 $69,300,000.00 $23,100,000.00 D5415 SC 16 9.50% 1 0.905 0.81 17 18 NPV $121,713,566.01 $135,931,086.67 $100,387,285.02 19 $9,240,000.00 $0.00 $0.00 $4,149,375.00 0.625 $9,240,000.00 $0.00 $0.00 0.715 0.62 0.525 $78,087,780.89 $62,979,020,56 $62,979,020,56 D. Your boss would also like to know just how sensitive the NPV of the project is to operating costs. What is the highest annual operating cost increase associated with the project that would result in a positive NPV? (HINT: Find the answer using the "Goal Seek" function in Excel. Solve for the operating cost that sets NPV to $1. If your NPV cell is in units of thousands, an NPV of $1 would be shown as $0.001 in the spreadsheet, meaning that you'll need to change the format to $x.xxx.) All other assumptions are as in Part C. Name this spreadsheet EBAY-D. E. For the final spreadsheet, change annual operating costs back to $73.5 million. Then, find the IRR of the project using "Goal Seek." (HINT: Solve for the cost of capital that sets the NPV to zero.) All other assumptions are as in Part D. Save as EBAY-E. The cost of capital cell should be highlighted yellow with the cost that generates a $0 NPV. That is the definition of IRR-it's the WACC that produces a zero NPV. cha doll The company eBay (ticker: EBAY) is considering installing a new and highly sophisticated computer system to help expand its business, which would cost $75 million. Delivery and installation would add another $1.2 million to the initial cost. The new computer system has a 5-year class life under MACRS. Because of the half-year convention, it will take six years for eBay to fully depreciate the cost of the system (MACRS percentages: 20, 32, 19, 12, 11 and 6 percent), and at the end of Year 6 the salvage value of the system is estimated to be $6.XXX million, where XXX are the digits found in your KU email address. Additional data: If the new system is purchased, revenue is expected to increase over the present level by $112 million in each of the first three years, by $96 million in Year 4, and by $85 million in Years 5 and 6. The increase in operating costs is projected at $73.5 million for each of the six years. > eBay's federal-plus-state income tax rate is 37.5 percent. The project's cost of capital is 9.5 percent It is expected that installation of the new system would cause the following changes in working capital accounts (1) an increase in receivables of $27 million because of expanded services, (2) an increase in inventories of $6.5 million, and (3) an increase in accounts payable and accruals combined equal to $7.5 million. -> Trinn Fynal do the follow