Please use this excel template for the spread sheet, I can seem to figure out how to complete the last half.

https://drive.google.com/file/d/0BzawUzMQcadNS3NhVnA3WjZRU0U/view?usp=sharing

it's uploaded on google drive and has the asusmptiosn up top, thanks in advance.

Williams Corp. makes chrome wheels that are sold through mail order and auto supply stores nationally. They are considering the construction of a new manufacturing plant in South Dakota to increase their capacity by 25%. This new capacity will be needed to meet the demand from a large national auto parts chain.

The plant will be able to manufacture 20,000 sets of chrome wheels a year when at full capacity. They will sell the wheels for $120 a set. The COGS (excluding depreciation) is projected to be 60% of sales or $72 per set. They expect that fixed operating expenses (all of which are incremental new expenses) will be $90,000 a year. The land will cost $200,000 today and can not be depreciated. The plant and equipment will cost $2,300,000 today and will be depreciated for tax purposes on a straight line basis (10% per year) to a value of zero over 10 years.

They expect to be able to sell 10,000 sets in year 1 and they expect sales to grow by 4% per year. At the end of ten years they will close the plant and expect to be able to sell it and the land at that time for $1,200,000 before taxes. The project is expected to require an initial investment of $180,000 in Accounts Receivable & Inventory less Accounts Payable and Accrued Expenses or Net Operating Working Capital (NOWC). In subsequent years the year end investment in NOWC is expected to be 15% of next yearAc€?cs sales.

The opportunity cost of capital for Williams Corp. is 10.2% and their marginal income tax rate is 35%. Calculate the NPV and IRR of the project. Should Williams invest in the new plant?