Question: Please show the formulas in the green boxes. Webmasters.com has developed a powerful new server that would be used for corporations' Internet activities. It would

Please show the formulas in the green boxes. Webmasters.com has developed apowerful new server that would be used for corporations' Internet activities. It

Please show the formulas in the green boxes.

Webmasters.com has developed a powerful new server that would be used for corporations' Internet activities. It would cost $4.250 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 11% of the year's projected sales; for example, NWC0 = 11\%(Sales1). The firm believes it could sell 985 units per year. The servers would sell for $4.47 thousand per unit and Webmasters believes that variable costs would amount to $2.25 thousand per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 2.0\%. NOTE: The Input Data section already incorporates inflation in cells G70 through J70 and G71 through J71. The company's nonvariable costs would be $0.3 million at Year 1 and would increase with inflation. NOTE: The Input Data section already incorporates inflation in cells G72 through J72. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The equipment would be depreciated over a 5-year period, using MACRS rates given in the Input Data section below. The estimated market value of the equipment at the end of the project's 4-year life is $500 thousand. Webmasters' federal-plus-state tax rate is 21%. Its cost of capital is 14% for average-risk projects, defined as projects with a coefficient of variation of NPV between 1.9 and 2.3 . Low-risk projects are evaluated with a WACC of 9%, and high-risk projects at 19%. Develop a spreadsheet model using the input data below, and use it to find the project's NPV, IRR, MIRR, and payback, assuming this is an average risk project initially. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|l|}{ Input Data } \\ \hline WACC & 14% & & & & & \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ Tax rate }} & & & & & \\ \hline & & \multicolumn{5}{|c|}{ Years } \\ \hline \$in thousands & & 0 & 1 & 2 & 3 & 4 \\ \hline Growth rate for units sold & & & & 0.0% & 0.0% & 0.0% \\ \hline Units sold & & & 985 & 985 & 985 & 985 \\ \hline Inflation in prices and costs (starting in year 2 ) & & & & 2.0% & 2.0% & 2.0% \\ \hline Sales price per unit (excl. depr.) & & & $4.47 & $4.56 & $4.65 & $4.74 \\ \hline Variable costs per unit (excl. depr.) & & & $2.25 & $2.30 & $2.34 & $2.39 \\ \hline Nonvariable costs (excl. depr.) & & & $300 & $306 & $312 & $318 \\ \hline Equipment cost - Basis for depreciation & & $4,250 & & & & \\ \hline Annual equipment depr. rate & & & 20.00% & 32.00% & 19.20% & 11.52% \\ \hline Sales price (salvage value) of equipment at Year 4 & & & & & & $500 \\ \hline Net operating working capital/Sales & & 11% & 11% & 11% & 11% & 0% \\ \hline \end{tabular} ***Replace values in yellow cells with formulas. Otherwise your sensitivity and scenario analyses will be incorrect, and YOU WILL LOSE POINTS*** Webmasters.com has developed a powerful new server that would be used for corporations' Internet activities. It would cost $4.250 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 11% of the year's projected sales; for example, NWC0 = 11\%(Sales1). The firm believes it could sell 985 units per year. The servers would sell for $4.47 thousand per unit and Webmasters believes that variable costs would amount to $2.25 thousand per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 2.0\%. NOTE: The Input Data section already incorporates inflation in cells G70 through J70 and G71 through J71. The company's nonvariable costs would be $0.3 million at Year 1 and would increase with inflation. NOTE: The Input Data section already incorporates inflation in cells G72 through J72. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The equipment would be depreciated over a 5-year period, using MACRS rates given in the Input Data section below. The estimated market value of the equipment at the end of the project's 4-year life is $500 thousand. Webmasters' federal-plus-state tax rate is 21%. Its cost of capital is 14% for average-risk projects, defined as projects with a coefficient of variation of NPV between 1.9 and 2.3 . Low-risk projects are evaluated with a WACC of 9%, and high-risk projects at 19%. Develop a spreadsheet model using the input data below, and use it to find the project's NPV, IRR, MIRR, and payback, assuming this is an average risk project initially. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|l|}{ Input Data } \\ \hline WACC & 14% & & & & & \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ Tax rate }} & & & & & \\ \hline & & \multicolumn{5}{|c|}{ Years } \\ \hline \$in thousands & & 0 & 1 & 2 & 3 & 4 \\ \hline Growth rate for units sold & & & & 0.0% & 0.0% & 0.0% \\ \hline Units sold & & & 985 & 985 & 985 & 985 \\ \hline Inflation in prices and costs (starting in year 2 ) & & & & 2.0% & 2.0% & 2.0% \\ \hline Sales price per unit (excl. depr.) & & & $4.47 & $4.56 & $4.65 & $4.74 \\ \hline Variable costs per unit (excl. depr.) & & & $2.25 & $2.30 & $2.34 & $2.39 \\ \hline Nonvariable costs (excl. depr.) & & & $300 & $306 & $312 & $318 \\ \hline Equipment cost - Basis for depreciation & & $4,250 & & & & \\ \hline Annual equipment depr. rate & & & 20.00% & 32.00% & 19.20% & 11.52% \\ \hline Sales price (salvage value) of equipment at Year 4 & & & & & & $500 \\ \hline Net operating working capital/Sales & & 11% & 11% & 11% & 11% & 0% \\ \hline \end{tabular} ***Replace values in yellow cells with formulas. Otherwise your sensitivity and scenario analyses will be incorrect, and YOU WILL LOSE POINTS***

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