* Please do this on EXCEL WORKBOOK and please show me the formulas because I don"t understand that part. Thank you.

10. Tuff Wheels was getting ready to start its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The following table contains the relevant information for this project. Development Cost Estimated Development Time Pilot Testing Ramp-up Cost Marketing and Support Cost Sales and Production Volume Unit Production Cost Unit Price Interest Rate $1,000,000 9 months $200,000 $400,000 $150,000 per year 60,000 per year $100 $170 8% Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new prod- uct must be created. Year 4 Year 1 Year 2 Year 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Schedule Kiddy Dozer Development Pilot Testing Ramp-up Marketing and Support Production and Sales Section 1 Strategy, Products, and Capacity a. What are the yearly cash flows and their present value (discounted at 8 percent) of this project? What is the net present value? b. What is the impact on NPV for the Kiddy Dozer if the actual unit sales are 50,000 per year or 70,000 per year? c. What is the effect caused by changing the discount rate to 9, 10, or 11 percent