Prepare a professional Excel spreadsheet using the following information:

A company is considering replacing a manual production process with a machine. The

manual process requires three relatively unskilled workers and a supervisor. Each of the

three unskilled workers makes $$17,500$ a year and the supervisor earns $$24,500.$ The

new machine can be operated with only one skilled operator who will earn $$41,000.$

Payroll taxes and employee benefits are an additional one$-$third of all wages and

salaries.

The machine costs $$150,000$ to buy and $$10,000$ to install. It will be depreciated on a

straight line basis for five years. The project life is $6$ years and the machine is expected

to have a zero salvage value by the end of the project.

A service contract covers all maintenance of the proposed new machine for $$5,000$ a

year. The machine's output will be virtually indistinguishable from that of the manual

process in both quality and quantity. There are no other operating differences between

the manual and machine processes.

The company's cost of capital is $10\mathrm{.}53\%.$ The corporate tax rate is $40\%.$ Using the IRR

and NPV criteria should you accept the project?

NOTE: All calculations must be completed within Excel, using cell references.