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Its an excel problem. Screenshots and actual work in excel is appreciated. Suppose a company is...

Its an excel problem. Screenshots and actual work in excel is appreciated.

Suppose a company is about to start the following project, where all the dollar figures are in thousands of dollars. In year 0, the project requires a fixed cost of $12,000. The fixed costs is depreciated on the straight-line basis over five years, and there is a salvage value of $1,500 in year 5. The sales generated in years 1-5 are estimated to be 2,500 units, 3,200 units, 5,100 units, 3,400 units and 1,200 units. The costs of capital in year 1 is forecast to be 8.5% and decreases linearly by 0.2% for years 2 to 5, ending with 7.7% in year 5. The tax rate is forecast to be a constant 35.0%. Sales revenue per unit is forecast to be $8.50. Variable cost per unit is forecast to be $6.30. What is the project NPV? Develo­p your financial spreadsheet model with frozen panes for detailed calculations and name the worksheet “Project NPV”.

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