Please show the concepts on Excel Software!!

Please show the concepts on Excel Software!!

4) Hope Corporation is considering an expansion project. The proposed project has the following features: [15 points) The project has an initial cost of $1,000,000 (machine: $800,000 insurance: $40,000 shipping $60,000, modication: $100,000) --this is also the amount which can be depreciated using the following 5 year MACRS depreciation schedule: Year Depreciation Rate 1 20% 2 32 3 19.20 4 11.52 5 11.52 6 5.76 The sales price is expected to increase by 2 percent per year due to ination. The variable cost is expected to increase by 3 percent per year. The fixed cost will be $50,000 per year for the next five years. (No fixed cost increase) Number of units sold will grow by 5 percent every year. If the project is undertaken, net working capital (t-1) would be an amount equal to 10% of sales revenues (t). This net operating working capital will be recovered at the end of the project's life (t = 5). (You must consider an inflation effect.) If the project is undertaken, the company will sell additional 200,000 units in year one [t = l L. Unit price at the end of the Year 1 is $10. Unit price is $10 and variable unit cost is $4 at the end of the Year 1. The company's tax rate is 30 percent. The company has no debt. At the end of Year 5, the project's economic life is complete, but the company can sell the machine at $20,000 {market value of salvage). The project's WACC = 10 percent. a) Calculate NPV using Excel. 13) Using "Two Way Data Table" of the Excel, show the sensitivity of the NPV of the project to the growth rate of units sold per year (Use the growth rate from 0% to 10% in 1% increment) Hint: You can start from "CH11 Tool Kit" andi'or "Ch11 new capital budgeting problem". Parameters should be written in separate cells