Question: Please use excel to answer. Your company is exploring the possibility of offering a new product. The equipment required to manufacture the new product will

Please use excel to answer. Your company is exploring the possibility ofPlease use excel to answer.

Your company is exploring the possibility of offering a new product. The equipment required to manufacture the new product will cost $900,000 and will be depreciated on a straight-line basis over its six-year life to a salvage value of $90,000. The equipment will be sold at the end of the project for its salvage value. There will also be upfront tooling and set-up costs of $50,000, and a working capital injection of $35,000 which will be recovered at the end of the six-year project life. You estimate that the new product will cost $57.00 to make, and that it will sell for $85.00. Unit sales in year 1 are estimated to be 10,000, and in year 2 are estimated to be 15,000. Unit sales in years 3-6 are estimated to be 25,000. The tax rate for your company is 35%. What are the projected cash flows associated with this project, and what is the NPV using a discount rate of 20%

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