Scenario Manager is a tool in excel under the data tab

PLEASE SHOW WORK IN EXCEL

Problem 1: Down under Inc. is considering a new three-year project. The project requires an initial investment of $1.8 million and working capital investment of $200,000 (at time '0') The project is estimated to generate $1.25 million in sales each year. It has costs of $500,000 per year each year. The tax rate is 35% and the discount rate (WACC) is 12% Calculate the NPV of the project. Use straight line depreciation. The project has no salvage value. Generate three possible scenarios using the Scenario Manager in Excel using the following data: Optimistic Case Pessimistic case Base Case $1,500,000 $400,000 $1,250,000 $500,000 $1,000,000 Sales $600,000 Costs Discount rate 12% 10% 14% Tax rate 35% 30% 40% Initial Investment $1,800,000 $1,500,000 $2,000,000