Question: please answer 1-5. show excel work also please. Please use Excel for the following analysis United Technologies is considering building a new manufacturing plant to

please answer 1-5. show excel work also please.
please answer 1-5. show excel work also please. Please use Excel for

Please use Excel for the following analysis United Technologies is considering building a new manufacturing plant to produce super energy efficient "Home Climate Control Systems" through its Carrier division. The project would require an initial investment in new production facilities and equipment of $400 million in 2020 would fall in the 5-year straight-line depreciation schedule. United Technologies has already spent $20 million before 2020 designing and developing these new systems and they will need additional net working capital of $50 million in 2020. The table below contains sales, sale price, variable cost & fixed cost projections over the expected life of the project. The company's marginal tax rate is 20% and this project has a cost of capital of 9.5%. Year 2021 2022 Expected Unit Sales 100000 120000 Avg. Sales Price/units 3,000 $ 3,000 $ Avg. Variable costs/un $ 1,800 $ 1,800 $ Additional Fixed Costs $ 210,000 $ 215,000 $ 2023 2024 2025 130000 135000 130000 3,100 $ 3,100 $ 3,100 1,900 $ 1,950 $ 1,950 220,000 $ 225,000 $ 230,000 At the end of 2025, United Technologies will end the project and can sell their production facility & equipment for $85 million in addition to liquidating the extra net working capital that was needed at the starting of the project. Answer the following 1. What is the initial cash flow for the project in year 2020? 2. What are the annual free cash flows for the project from year 2021 to 2025? 3. What is the project's cash flow from terminating the project in year 2025? 4. Calculate the NPV and IRR for the project. 5. Should UTC accept this project? Explain why

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