THIS MUST BE COMPLETED IN EXCEL, PLEASE WORK IN EXCEL AND SHOW HOW: You are manager of a manufacturing business. Business is going very well and one production line is at full capacity. You want to double the size of the production line. Engineering has estimated the cost and time required. It can be accomplished without effecting the existing production. The timing of the cash flows for the facility is as follows. Month Cash Flow 1 $ (20,000.00) 2 $ (45,000.00) 3 $ (45,000.00) 4 $ (50,000.00) 5 $ (55,000.00) 6 $ (70,000.00) 7 $ (90,000.00) 8 $ (90,000.00) 9 $ (120,000.00) 10 $ (140,000.00) 11 $ (180,000.00) 12 $ (200,000.00) 13 $ (225,000.00) 14 $ (175,000.00) 15 $ (200,000.00) 16 $ (50,000.00) Total $ (1,755,000.00) The current cost of capital is 8% APR. What is the total cost of the project? You pay interest on the project every year (i.e., you do not pay off the capital, only the interest.) Calculate the total project cost including interest. Use annual numbers to calculate the internal rate of return. Sales start after the project is completed. You estimate that sales for the first year will be at 30% of capacity and increase to 60% in year 2. Sales after year 2 are estimated at 85% of capacity. The current production line generates $900,000 in net profit. The profit will be proportional to the percent capacity utilized. The company demands a minimum 20% internal rate of return for capital projects. Does the 10-year rate of return meet the company requirements? Assume that the company pays interest on the capital for the entire ten years.