Question: Please help explain how to do question 4 using excel QUESTION 4 Use the information in TABLE 4 to calculate the values shoivn below: Year


Please help explain how to do question 4 using excel
QUESTION 4 Use the information in TABLE 4 to calculate the values shoivn below: Year 1 OCF Project NPV (**you MUST use NPV function in excel) TABLE 4 You are considering a new product launch: Equipment for the project will cost $875,000 The project will have a four-year life, and have no salvage value. Depreciation is straight-line to zero over the four years. The required return on the project is 11%, and the tax rate is 35%. Projected annual sales and cost figures are shown below (sales and costs are estimated to be identical for each year 1-4) Based on the information given, calculate OCF and NPV \begin{tabular}{r|c|} \hline Equipment cost & $875,000 \\ Project length (years) & 4 \\ Required return & 11% \\ Tax rate & 35% \\ Annual Sales & $3,948,000 \\ Annual Variable costs & $2,869,000 \\ Annual Fixed costs & $345,000 \\ \hline Annual Depreciation & \\ \hline Annual EBIT & \\ \hline Annual Taxes & \\ \hline Annual OCF & \\ \hline Cash flows & \\ YEAR \\ \hline 0 & \\ \cline { 2 - 2 } & \\ \hline & \\ \hline & \\ \hline \end{tabular} PROJECT NPV *you MUST use NPV function in excel QUESTION 4 Use the information in TABLE 4 to calculate the values shoivn below: Year 1 OCF Project NPV (**you MUST use NPV function in excel) TABLE 4 You are considering a new product launch: Equipment for the project will cost $875,000 The project will have a four-year life, and have no salvage value. Depreciation is straight-line to zero over the four years. The required return on the project is 11%, and the tax rate is 35%. Projected annual sales and cost figures are shown below (sales and costs are estimated to be identical for each year 1-4) Based on the information given, calculate OCF and NPV \begin{tabular}{r|c|} \hline Equipment cost & $875,000 \\ Project length (years) & 4 \\ Required return & 11% \\ Tax rate & 35% \\ Annual Sales & $3,948,000 \\ Annual Variable costs & $2,869,000 \\ Annual Fixed costs & $345,000 \\ \hline Annual Depreciation & \\ \hline Annual EBIT & \\ \hline Annual Taxes & \\ \hline Annual OCF & \\ \hline Cash flows & \\ YEAR \\ \hline 0 & \\ \cline { 2 - 2 } & \\ \hline & \\ \hline & \\ \hline \end{tabular} PROJECT NPV *you MUST use NPV function in excel
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