Can someone please help me solve this question using Excel? Aria Acoustics, Incorporated (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:Year1SAWNP2345Unit Sales76,00089,000108,750101,50068,800Production of the implants will require $2,250,000 in net working capital tostart and additional net working capital investments each year equal to 20percent of the projected sales increase for the following year. Total fixedcosts are $4,700,000 per year, variable production costs are $270 per unit,and the units are priced at $420 each. The equipment needed to beginproduction has an installed cost of $19,500,000. Because the implants areintended for professional singers, this equipment is considered industrialmachinery and thus qualifies as seven-year MACRS property. In five years,this equipment can be sold for about 25 percent of its acquisition cost. Thetax rate is 25 percent and the required return is 15 percent. MACRSschedulea. What is the NPV of the project?Note: Do not round intermediate calculations and round your answer to2 decimal places, e.g., 32.16.b. What is the IRR?Note: Do not round intermediate calculations and enter your answer as

The internal rate of return refers to the discount rate that is helpful for the inventors in…

Answered: a. What is the NPV of the project?

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a. What is the NPV of the project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

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Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 19P

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Question

Can someone please help me solve this question using Excel?

Aria Acoustics, Incorporated (AAI), projects unit sales for a new seven-
octave voice emulation implant as follows:
Year
1
SAWNP
2
3
4
5
Unit Sales
76,000
89,000
108,750
101,500
68,800
Production of the implants will require $2,250,000 in net working capital to
start and additional net working capital investments each year equal to 20
percent of the projected sales increase for the following year. Total fixed
costs are $4,700,000 per year, variable production costs are $270 per unit,
and the units are priced at $420 each. The equipment needed to begin
production has an installed cost of $19,500,000. Because the implants are
intended for professional singers, this equipment is considered industrial
machinery and thus qualifies as seven-year MACRS property. In five years,
this equipment can be sold for about 25 percent of its acquisition cost. The
tax rate is 25 percent and the required return is 15 percent. MACRS
schedule
a. What is the NPV of the project?
Note: Do not round intermediate calculations and round your answer to
2 decimal places, e.g., 32.16.
b. What is the IRR?
Note: Do not round intermediate calculations and enter your answer as

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