Question: Show in excel with formulas please! 6. Based on the following information for project X, should we undertake required return? Use a 34 percent tax
6. Based on the following information for project X, should we undertake required return? Use a 34 percent tax rate throughout. Project X involves a new type of graphite composite in-line skate wheel. We think year at a price of $1,000 year life Fixed costs for the project will run $450,000 manufacturing equipment. This equipment is the venture, assuming a 28 percent we can sell 6,000 units per each. Variable costs will run about $400 per unit, and the product should have a four- per year. Further, we will need to invest a total of $1,250,000 in working seven-year MACRS property for tax purposes. In four years, the equipment will be worth about half of what we paid for it. We will have to invest $1,150,000 in net capital at the start. After tha t, net working capital requirements will be 25 percent of sales
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