Please solve using excel and include important formulas if possible so that I can replicate this as I practice: Arnold Inc.Arnold$$Inc$.$

is considering a proposal to manufacture$$ high$-$end protein bars used as food supplements by body builders. The project requires use of an existing$$ warehouse, which the firm acquired three years ago for

$$$$33$

million and which it currently rents out for

$$$$103$ comma $000103,000.$

Rental rates are not expected to change going forward. In addition to using the$$ warehouse, the project requires an upfront investment into machines and other equipment of

$$$$1\mathrm{.}301\mathrm{.}30$

million. This investment can be fully depreciated$$ straight$-$line over the next $10$ years for tax purposes.$$ However,

Arnold Inc.Arnold$$Inc$.$

expects to terminate the project at the end of

$88$

years and to sell the machines and equipment for

$$$$416$ comma $000416,000.$

$$Finally$,$ the project requires an initial investment into net working capital equal to$10\%$ of predicted$$ first$-$year sales.$$ Subsequently, net working capital is$10\%$ of the predicted sales over the following year. Sales of protein bars are expected to be

$$$$4\mathrm{.}504\mathrm{.}50$

million in the first year and to stay constant for

$88$

years. Total manufacturing costs and operating expenses$($excluding depreciation$)$ are$80\%$ of$$ sales, and profits are taxed at

$35\%35\%.$

a$.$ What are the free cash flows of the$$ project?

b$.$ If the cost of capital is

$15\%15\%,$

what is the NPV of the$$ project?