Please show how to do in excel!!! You are a financial analyst working for Little Black Dress, Inc. It is your job to run the data on a potential new production line designed to make little olive green dresses. The new line will last for five years and cost $3million. It will be depreciated straight-line to zero at the end of its five-year life. It can then be sold for scrap value, at 15% of its original cost. Marketing believes that the new production line can generate $2million in annual sales, with fixed costs of $600,000 annually. Tax rate =21%. The required rate of return on any LBD project is 16%.

a.

Calculate the operating cash flow for this project.

b.

What is the after-tax salvage value of the production line?

c.	What are the relevant TOTAL cash flows for each year that the production line is in use?
	YR 0
	Yr 1
	Yr 2
	Yr 3
	Yr 4
	Yr 5

d.	What is the NPV of the project?
e.	What is the IRR of the project?
f.	What is the project's payback?