Project #2 This time we won't go through the spreadsheet step by step. You are given the assumptions an must complete the projections on your own. 1. Projecting cash ows. Complete the cash ow projections for project #2. Assume the following: The project has a 10-year life. Revenues are $70,000 in year 1 and increase $5,000 per year thereafter. Operating expenses are 70% of revenues in each year. Initial equipment purchases are $100,000, depreciated on a 7-year MACRS schedule. Equipment purchased will have a resale value of $30,000 at the end of the project. The tax rate is expected to be 35% over the life of the project. The discount rate for the project is 11.5% Net working capital of $25,000 will need to be maintained over the life of the project. vvvvvvvv 2. Finding the NPV. Use the NPV function to find the NPV of the project. Q3: Under the above assumptions, what is the NPV of this project