*Note: If possible show steps and calculations instead of just using Excel to input the numbers so I can understand how

[answerhappygod]

*Note: If possible show steps and calculations instead of just
using Excel to input the numbers so I can understand how to do the
problem and learn. Thank you!
You are the analyst for Charlie's Grill, a restaurant that is
thinking of expanding their business to include catering for at
least the next three years. To take on this project, the restaurant
would need to purchase a van to transport food to customer
locations. The price of the van is $48,000, and there would be a
customization expense of $10,000 to modify the van for this special
use. The vehicle would be depreciated using the 3-year MACRS
Schedule Download MACRS Schedule(33%, 45%, 15%, and 7%)
and be sold at the end of 3 years for $10,500. This project would
increase sales by $28,000 annually and increase food costs by
$5,000. There would also be an increase in net operating working
capital of $2,500. The restaurant’s current tax rate is 21%, and
its WACC is 10%.
Based on the Capital Budgeting Techniques we’re learning about
in class, should the restaurant expand their business to include
catering services? Why or why not? Once you have calculated
the cash flows for this project, you will also need to calculate
the project’s payback period, discounted payback period, NPV, IRR
and MIRR.
Now assume the restaurant's WACC falls to 7.5% and calculate the
NPV, IRR, MIRR, payback period, and discounted payback period.
Would this change your recommendation? Why or why not?
NOTE: Your recommendation must be written in paragraph
format.