You work for a new startup that is trying to manufacture phones. You are tasked with building a model which will

help determine how many machines to invest in and how much to spend on marketing. Each machine produces

noutput phones per year. Each phone sells for $pphone and costs $cphone in variable costs to produce. After nlife

years, the machine can no longer produce output, but may be scrapped for $pscrap. The machine will not be

replaced, so you may end up with zero total output before your model time period ends. Equity investment is

limited$,$ so in each year you can spend cmachine to either buy a machine or buy advertisements. In the first year you

must buy a machine. Any other machine purchases must be made one after another $($advertising can only begin

after machine buying is done$).$ Demand for your phones starts at d$1.$ Each time you advertise, demand increases

by gd$\%.$ The prevailing market interest rate is r$.$

$$ You may limit your model to $20$ years and a maximum of $5$ machines if it is helpful.

$$ For simplicity, assume that cmachine is paid in every year, even after all machines have shut down.

$$ Ensure that you can change the inputs and the outputs change as expected.

$$ For simplicity, assume that fractional phones can be sold, you do not need to round the quantity transacted

Inputs

$$ noutput: Number of phones per machine per year

$$ nmachines: Number of machines purchased

$$ nlife: Number of years for which the machine produces phones

$$ pphone: Price per phone

$$ pscrap: Scrap value of machine

$$ cmachine: Price per machine or advertising year

$$ cphone: Variable cost per phone

$$ d$1$: Quantity of phones demanded in the first year

$$ gd: Percentage growth in demand for each advertisement

$$ r: Interest rate earned on investments

Outputs

$$ Cash flows in each year, up to $20$ years

$$ PV of cash flows, years $1-20$

s the following inputs:

$$ noutput: $100,000$

$$ pscrap: $$50,000$

$$ pphone: $$500$

$$ cmachine: $$1,000,000$

$$ cphone: $$250$

$$ nlife: $10$

$$ nmachines: $5$

$$ d$1$: $100,000$

$$ gd: $20\%$

$$ r: $5\%$

You should get the following result:

Cash Flows:

Year $1$: $$24,000,000$

Year $2$: $$24,000,000$

Year $3$: $$24,000,000$

Year $4$: $$24,000,000$

Year $5$: $$24,000,000$

Year $6$: $$29,000,000$

Year $7$: $$35,000,000$

Year $8$: $$42,200,000$

Year $9$: $$50,840,000$

Year $10$: $$61,208,000$

Year $11$: $$73,699,600$

Year $12$: $$74,050,000$

Year $13$: $$49,050,000$

Year $14$: $$24,050,000$

Year $15$: $$-950,000$

Year $16$: $$-1,000,000$

Year $17$: $$-1,000,000$

Year $18$: $$-1,000,000$

Year $19$: $$-1,000,000$

Year $20$: $$-1,000,000$

NPV: $$369,276,542$

find the formula for year $12$ and $13$ and make sure the formula equals the value for the corosponding years. excel please.