Question: Please show the formula Wonders Inc. seeks to develop a new project that would produce units capable of enhancing assembly line productivity across several types

Wonders Inc. seeks to develop a new project that would produce units capable of enhancing assembly line productivity across several types of industries. The project would cost $20 million at Year 0 . The project would require net working capital at the beginning of each year in an amount equal to 13% of the year's projc' 'ed sales changes; for example, NWC 0=13% (Sales)-Salese). The assembly line units would sell for $21,000 per unit, and Wonders believes that variable costs would amount to 518,500 per unit (both 2022 dollars). The company's nenvariable costs would be $1,100,000 in 2022 . The project would bave a life of 9 years. If the project is undertaken, it must be continued for the entire 9 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 850 units per year. The equipment would be depreciated using a 3-year class over four years, using MACRS rates (33\%, 45%,15% an 7\%\%). The estimated market value of the project at the end of the project's 9-year life is $125,000. It has been cstimated that the environmental shutdown costs will be $2,600,000. Wender's federal-plus-state tax rate is 30%. Its cost of capital is 11% for average-riak projects and the expected inflation rate is 4% per year. Find the project's NPV, IRR, and MIRR. What do these measures suggest? Find the payback period for this project using Excel functionality. x>fx inflation rate \begin{tabular}{|c|c|c|c|} \hline C & D & E & F \\ \hline & & Variable cost \\ \hline 2021 & & \\ \hline \end{tabular} Capital Expenditures Salvage Environmental shut down cost Revenues CoGs Non variable cost Depreciation Taxes NOPAT Net Operating Cashflows Changes in WC [Rec - Pay] Net Cash flows Net Present Value = IRR MIRR ACRS: \begin{tabular}{|r|r|r|r|} 1 & 2 & 3 & 4 \\ \hline 0.33 & 0.45 & 0.15 & 0.07 \\ \hline \end{tabular} Wonders Inc. seeks to develop a new project that would produce units capable of enhancing assembly line productivity across several types of industries. The project would cost $20 million at Year 0 . The project would require net working capital at the beginning of each year in an amount equal to 13% of the year's projc' 'ed sales changes; for example, NWC 0=13% (Sales)-Salese). The assembly line units would sell for $21,000 per unit, and Wonders believes that variable costs would amount to 518,500 per unit (both 2022 dollars). The company's nenvariable costs would be $1,100,000 in 2022 . The project would bave a life of 9 years. If the project is undertaken, it must be continued for the entire 9 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 850 units per year. The equipment would be depreciated using a 3-year class over four years, using MACRS rates (33\%, 45%,15% an 7\%\%). The estimated market value of the project at the end of the project's 9-year life is $125,000. It has been cstimated that the environmental shutdown costs will be $2,600,000. Wender's federal-plus-state tax rate is 30%. Its cost of capital is 11% for average-riak projects and the expected inflation rate is 4% per year. Find the project's NPV, IRR, and MIRR. What do these measures suggest? Find the payback period for this project using Excel functionality. x>fx inflation rate \begin{tabular}{|c|c|c|c|} \hline C & D & E & F \\ \hline & & Variable cost \\ \hline 2021 & & \\ \hline \end{tabular} Capital Expenditures Salvage Environmental shut down cost Revenues CoGs Non variable cost Depreciation Taxes NOPAT Net Operating Cashflows Changes in WC [Rec - Pay] Net Cash flows Net Present Value = IRR MIRR ACRS: \begin{tabular}{|r|r|r|r|} 1 & 2 & 3 & 4 \\ \hline 0.33 & 0.45 & 0.15 & 0.07 \\ \hline \end{tabular}
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