A business opportunity has presented itself to you and one of your classmates. Your opportunity is...

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Finance

A business opportunity has presented itself to you and one ofyour classmates. Your opportunity is to enter the fast growingcraft beer industry. Your projected sales in the first year is 7500kegs. Your projected growth rate is 8 percent. Entering thebusiness will require $35,000 of net working capital. Total fixedcosts are $95,000. Variable production costs are $30 per keg andkeg sales are priced at $55 each. The equipment to begin productionis $175,000. The equipment will be depreciated using straight linedepreciation over a five year life and has no salvage value. Thetax rate is 34 percent and the required return is 30 percent. Whatis the NPV of the project and should you pursue the project? Showall work in excel

$15,599.89 Yes, take the project.
$37,351.71 Yes, take the project.
-$13,383.39 No do not take the project.
$42,313.13 Yes, take the project.

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A business opportunity has presented itself to you and one ofyour classmates. Your opportunity is to enter the fast growingcraft beer industry. Your projected sales in the first year is 7500kegs. Your projected growth rate is 8 percent. Entering thebusiness will require $35,000 of net working capital. Total fixedcosts are $95,000. Variable production costs are $30 per keg andkeg sales are priced at $55 each. The equipment to begin productionis $175,000. The equipment will be depreciated using straight linedepreciation over a five year life and has no salvage value. Thetax rate is 34 percent and the required return is 30 percent. Whatis the NPV of the project and should you pursue the project? Showall work in excel $15,599.89 Yes, take the project.$37,351.71 Yes, take the project.-$13,383.39 No do not take the project.$42,313.13 Yes, take the project.