Please help me obtain the calculations through excel for this scenario. This is all the information given, and I must calculate the NPV, IRR, payback period, and profitability index. Thank you. I have got several different calculations, so I am turning to you for the correct calculations.

You work as a finance manager for Drill Tech, Inc., a mid-sizedmanufacturing company located in Minnesota. Which one of these projects will provide the most shareholder value to the company?

Other than what is noted in each project scenario, all other costs will remain constant, and you should remember to only evaluate the incremental changes to cash flows.

The proposed projects for you to review are as follows.

Project A: Major Equipment Purchase

• A new major equipment purchase, which will cost $10 million; however, it is projected to reduce cost of sales by 5% per yearfor 8 years.
• The equipment is projected to be sold for salvage value estimated to be $500,000 at the end of year 8.
• Being a relatively safe investment, the required rate of return of the project is 8%.
• The equipment will be depreciated at a MACRS 7-year schedule.
• Annual sales for year 1 are projected at $20 million and should stay the same per year for 8 years.
• Before this project, cost of sales has been 60%.
• The marginal corporate tax rate is presumed to be 25%.