Question: please complete in Excel!! thank you PROBLEM 1: Australia Inc. Given the following data for a capital budgeting project; Australia Inc. is considering a new

please complete in Excel!! thank you please complete in Excel!! thank you PROBLEM 1: Australia Inc. Given the

PROBLEM 1: Australia Inc. Given the following data for a capital budgeting project; Australia Inc. is considering a new three-year project. The project requires an initial investment of $9 million and an additional working capital investment of $3 million (at time "O"). The project is estimated to produce 5 million hats per year each year that can be sold for $6.00/hat. It has variable costs of $3.00/unit each year and fixed cost of $3 million per year. The tax rate is 25% and the discount rate (WACC) is 12%. Use straight line depreciation. The project has no salvage value. Working capital is recovered at the end of the project (a) Calculate the NPV of the project. (b) Generate three possible scenarios and a summary sheet using the "Scenario Manager" in Excel using the following data: Base Case Optimistic Case Pessimistic case Initial Investment $9 million $9 million $9 million Working capital $3 million $3 million #Units sold /Year 5 million 6 million 4 million Price per unit $6 $7 $5 Variable cost/unit $3/unit $2/Unit $4/unit Fixed cost/year $3.0 million $3.0 million $3.0 million Tax rate 25% 25% Discount rate (WACC) 12% 12% $3 million 25% 12%

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