Create an Excel spreadsheet for a production plant with the following criteria:
- The company will lease for 5 years at $1,500,000 per year.
- It will cost the firm $4,000,000 in capital (straight-line depreciation, 5 year life) in year 0.
- It will cost the firm an additional $150,000 per year after the new production plant is brought online for other expenses.
- It will generate incremental revenue of $3,500,000 per year.
In a separate document, indicate how the project would fair under hurdle rate scenarios of 10%, 15%, and 20% (based on MIRR).© BrainMass Inc. brainmass.com June 4, 2020, 12:39 am ad1c9bdddf
The solution explains how to determine the cash flows for the project and the NPV