Question: PLEASE SOLVE USING EXCEL AND SHOW YOUR FORMULAS! WILL UPVOTE FOR DETAILED, CLEAR ANSWERS! 16. Emperor's Clothes Fashions can invest $5.38 million in a new

PLEASE SOLVE USING EXCEL AND SHOW YOUR FORMULAS! WILL UPVOTE FOR DETAILED, CLEAR ANSWERS!

PLEASE SOLVE USING EXCEL AND SHOW YOUR FORMULAS! WILL UPVOTE FOR DETAILED,

16. Emperor's Clothes Fashions can invest $5.38 million in a new plant for producing invisible makeup. The plant has an expected life of five years, and expected sales are 6.38 million jars of makeup a year. Fixed costs are $2.95 million a year, and variable costs are $1.95 per jar. The product will be priced at $2.95 per jar. The plant will be depreciated straight-line over five years to a salvage value of zero. The opportunity cost of capital is 10%, and the tax rate is 40%. a) What is project NPV under these base-case assumptions? b) What is NPV if variable costs turn out to be $2.15 per jar? c) What is NPV if fixed costs turn out to be $2.45 million per year? d) At what price per jar would project NPV equal zero

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