Using this template please show how to compute with formulas

2. NPV and IRR analysis Straw Hat forecasts the following for its future operations. a) Annual sale of 100,000 memberships at $75 each. b) Cost of goods sold of $25 for each membership. c) Operating expenses of $3,000,000 per year. d) Assume zero net working capital requirements (0 inventory, accounts receivable/payable, and cash). e) An initial investment at the beginning of $7,500,000 on servers and computers, which will be depreciated straight-line to zero over the next 7 years (Wow! No MACRS). f) Tax rate is 38%. g) The investment horizon is assumed to be 7 years. After 7 years, this company's free cash flows will terminate. No liquidation value is assumed given the nature of company. A B D G H M 1 Discounted Cash Flow (DCF) Template Parameters 2 3 Year 0 1 2. 3 4 5 6 7 Memberships Sold Membership Price 4 Revenue 5 COGS COGS 6 Cost of Capital 7 Gross profit Operating Expenses PP & E Life 8 Depreciation Tax rate 9 EBIT Operating Expenses 10 Income Tax 11 12 13 Earnings Add Back Depreciation Capital Expenditure 14 Free Cash Flow 15 16 Cost of Capital 17 18 19 NPV IRR 20 21 22 23 24 25 26 27 28 no