1. Input the positive cash flows due to production cost savings.

. Sales revenues: Years 1-5 $135,000 per year; Years 6—10 $200,000 per year

. Operating costs: Years 1—5 $95,000 per year; Years 6—10 $135,000 per year 2. Assume the major maintenance expenditure of $85,000 is made in Year 7.

. Complete the five measures at the bottom of the spreadsheet. 3. Using Excel functions, given a hurdle rate calculate the project’s Net Present Value (=NPV) and the Internal Rate of Return (=IRR).

4. Calculate the payback period and profitability index.

– Provide a recommendation as to whether this project is acceptable. Business