PLEASE USE EXCEL TO SHOW WORK

capital budgeting project; Problem 2: Given the following data for a Acorn Inc. is considering a new three-year project. The project requires an initial investment of $5 million and an additional working capital investment of $1 million (at time '0'). The project is estimated to produce 2 million acorns that can be sold for $3.00/unit each year. S It has variable costs of $0.50/unit each year and fixed cost of $1 million per year. The tax rate is 35% and the discount rate (WACC) is 10%. Use straight line depreciation. The project has no salvage value. Working capital is recovered at the end of the project Calculate the NPV of the project. Generate three possible scenarios and a summary sheet using the "Scenario Manager" in Excel using the following data: Base Case Optimistic Case Pessimistic case Initial Investment $5 million $4 million $6 million Working capital $1 million $0.8 million $1.2 million 1.5 million #Units sold Year 2 million 2.5 million $4 Price per unit $3 $2 Variable cost/unit $0.5 $0.4 $0.6 $1 million Fixed cost/year $0.75 million $1.25 million Tax rate 35% 30% 40% Discount rate (WACC) 10% 8% 12%