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    Capital Budgeting Analysis

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    I need help with the following. Thank you.

    Practice Capital Budgeting Analysis
    Develop an Excel spreadsheet for performing a capital budgeting analysis of the following project:

    Based on the following project assumptions, develop a capital budgeting analysis and determine the NPV and the IRR for the project. State your recommendation.

    Equipment invoice=$250,000
    Transportation and installation= $75,000
    Training=$20,000
    Projected incremental increase in sales in YR 1 = $240,000.
    Sales escalate at a rate of 10% per year after YR 1. Expenses in YR 1 are projected to be 32% of the capital investment. Expenses escalate at a rate of 4% per year after YR 1. Depreciation is straight line, 5 years.
    Salvage value at the end of YR 3 =$85,000
    WACC=10%
    Project life =3 years
    Tax rate = 40%
    Tax credits may be used against other income.

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