Please include excel formulas for how you solved all orange boxes for understanding. Please also include how you found NPV and IRR.

2-11 Project Valuation HMG Corporation is considering the manufacture of a new chemical compound that is used to make high-pressure plastic containers. An investment of $4 million in plant and equipment is required. The firm estimates that the investment will have a five-year life, and will use straight-line depreciation toward a zero salvage value. However, the investment has anticipated salvage value equal to 10% of its original cost. The number of pounds (in millions) of the chemical compound that HMG expects to sell over the five-year life of the project are as follows: 1.0,1.5,3.0,3.5, and 2.0. To operate the new plant, HMG estimates that it will incur additional fixed cash operating expenses of $1 million per year and variable operating expenses equal to 45% of revenues. HMG also estimates that in year t it will need to invest 10% of the anticipated increase in revenues for year t+1 in net working capital. The price per pound for the new compound is expected to be $2.00 in years 1 and 2, then $2.50 per pound in years 3 through 5. HMG's tax rate is 38%, and it requires a 15% rate of return on its new-product investments. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Given } \\ \hline Investment & s & 4,000,000 \\ \hline Plant life & & 5 \\ \hline Salvage value & s & 400,000 \\ \hline Variable Cost % & & 45% \\ \hline Fixed operating cost & s & 1,000,000 \\ \hline Tax rate & & 38% \\ \hline Working capital & & 10% Change in revenues \\ \hline Required Rate of Return & & 15% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Solution } \\ \hline & \multicolumn{12}{|c|}{ Year } \\ \hline & & 0 & & 1 & & 2 & & 3 & & 4 & & 5 \\ \hline Sales volume & & & $ & 1,000,000 & $ & 1,500,000 & $ & 3,000,000 & s & 3,500,000 & $ & 2,000,000 \\ \hline Unit Price & & & & 2.00 & & 2.00 & & 2.50 & & 2.50 & & 2.50 \\ \hline Revenues & & & & 2,000,000 & & 3,000,000 & & 7,500,000 & & 8.750,000 & & 5,000,000 \\ \hline Variable Operating Costs & & & & 900,000 & & 1,350,000 & & 3,375,000 & & 3,937,500 & & 2,250,000 \\ \hline Fixed Operating Costs & & & & 1,000,000 & & 1,000,000 & & 1,000,000 & & 1,000,000 & & 1,000,000 \\ \hline Depreciation Expense & & & & (720,000) & & (720,000) & & (720,000) & & (720,000) & & (720,000) \\ \hline Net Operating Income & & & $ & (620,000) & s & (70,000) & $ & 2,405,000 & $ & 3,092,500 & s & 1,030,000 \\ \hline Less: Taxes & & & & (235,600) & & (26,600) & & 913,900 & & 1,175,150 & & 391,400 \\ \hline NOPAT & & & $ & (384,400) & $ & (43,400) & $ & 1,491,100 & $ & 1,917,350 & $ & 638.600 \\ \hline Plus: Depreciation & & & & (720,000) & & (720,000) & & (720,000) & & (720,000) & & (720,000) \\ \hline Less: CAPEX & & 4,000,000 & & & & & & & & & & \\ \hline Less: Working Capital & & & & (100,000) & & (450,000) & & (125,000) & & 375,000 & & 500,000 \\ \hline Free Cash Flow & $ & (4,000,000) & $ & 235,600 & s & 226,600 & $ & 2,086,100 & $ & 3,012,350 & $ & 1,858,600 \\ \hline NPV & & & & & & & & & & & & \\ \hline IRR & & & & & & & & & & & & \\ \hline \end{tabular}