Please show and explain steps for practice in Excel. Thanks!

Answer Key Problem #4 (15 points) Regatta Sailboats has a new sailboat that is evaluating before bringing to market. The new sailboat would sell for S115,000 today and sales of 650 sailboats per year are expected to last for 6 years. The equipment necessary for production will cost $35 million and be depreciated on a 5-year MACRS schedule. The company projects that fixed costs will be $12.5 million per year and the variable costs will be S54,000 per boat in real terms. Inflation is projected to be 3.5 percent per year over the next 6 years. The price and fixed costs are expected to increase at the inflation rate, but variable costs are expected to increase at 1 percent over the inflation rate. The equipment can be sold for $3.5 million in real terms at the end of the project. The nominal required return is 12 percent a What is the NPV for this new sailboat? nd the tax rate is 38 percent. Price Quantity per year Equipment Depreciation 115,000 650 $ 35,000,000 Year 1 Year 2 Year 3 Year 4 Year 5 ear 20.00% 12,500,000 54,000 3.5% 1% 32.00% 19.20% 1 1.52% 1 1.52% 5.76% Fixed costs Variable costs/boat Inflation VC increase over inflation Equipment salvage (real) 3,500,000 Nominal required return Tax rate S 12% 38%