only need to do a to g For project 12-23 i (2), you don't need to actually perform sensitivity analysis, just explain how to do it.Also, all the calculations in the project needs to be done in excel...

MBA Excel Project
NPV
        Year 0    Year 1    Year 2    Year 3    Year 4                Information/Variables
    1.Investment Outlays                                10%    Cost of Capital
    Equipment Cost    $200.00                            40%    Marginal Tax Rate
    Installation    $40.00
    Capex    $240.00
    Increase in Inventory    $25.00
    Increase in Account Payables    $5.00
    Change in Net Operating working capital    $20.00
    2. Project operating cashflows
    Unit Sales    - 0    100.00    100.00    100.00    100.00
    Price/Unit        2.00    2.00    2.00    2.00
    Total revenue    - 0    200.00    200.00    200.00    200.00
    Operating Costs excluding depreciation        120.00    120.00    120.00    120.00
    Depreciation    - 0    79.20    108.00    36.00    16.80
    Total Costs    - 0    199.20    228.00    156.00    136.80
    EBIT    - 0    0.80    - 28.00    44.00    63.20
    Total taxes on Operating Income    - 0    0.32    - 11.20    17.60    25.28
    EBIT(1-T)        0.48    - 16.80    26.40    37.92
    Add abck Depreciation    - 0    79.20    108.00    36.00    16.80
    EBIT (1- T) + Depreciation    - 0    79.68    91.20    62.40    54.72
    3. Project Termination Cashflows
    Salvage Value                    25.00
    Tax on Salvage Value                    10.00
    After Tax Salvage Value    - 0    - 0    - 0    - 0    15.00
    Recovery of NOWC                    20.00
    Project Free Cash flows    - 0    - 0    - 0    - 0    35.00
    EBIT (1-T) + Depreciation - CAPEX - NOWC    - 260.00    79.68    91.20    62.40    89.72
    C    IRR    9.3%
        NPV    - 4.03
        MIRR    9.6%
        Payback period    3.30
    A.    recovery of net working capital means all the increase in the inventory and increase in the payables would be recovered and that money would be cash inflow for the firm
        If themachinery had sold for less than its book value, then there would be capital gain losses and we could have gotten the deductions from the net income and less taxes would have been paid
    B.
        1    The debt expense or interest expense should not be included in the project cash flows since we have already considered that in the cost of capital
        2    The last year renovation expense are the sunk costs and hence they should not be included in the project cash flows
        3    These are the opportunity costs and should be added back to the cashflwos as negative cash flows
        4    These are the opportunity costs and should be added back to the cashflwos as negative cash flows
    D
        For a replacement project the following...