please use the Excel sheet and show the steps and formulas? Your company, (insert a company name of your choice here), i

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please use the Excel sheet and show the steps andformulas?
Your company, (insert a company name of your choice here), isconsidering an opportunity to develop and introduce a new productwhich will trick kids into eating healthy at breakfast. The productis a breakfast “treat” which is actually made from all healthyingredients and contains no added sugar…..and it tastes good. Basedon your superior knowledge of the market, you think that thisproduct line will last a minimum of 5 years before the kids catchon and start eating sugar-coated sugar cubes again for breakfast(when I was a kid, there was actually a cereal called Super SugarCrisp).
Getting up and running will cost the company $1,000,000 forcapital equipment; there was an additional $400,000 for developmentexpenses. The equipment is expected to have a useful life of 5years (what a coincidence). The expected sales volumes are:
Year 1 400,000
Year 2 700,000
Year 3 900,000
Year 4 850,000
Year 5 600,000
Your assignment is to figure out if this is a good idea and, ofcourse, maximize your wealth.
A few facts:
 Unit cost is $1.250
 The profit margin is 37% on the selling price
 The corporate income tax rate is 25.8%
 The company’s cost of debt is 8%
 You will finance the entire $1,000,000 but you do have it incash if required; the financing will be at 9% and only 1 paymentper year (5 total payments) for simplicity.
A few questions
 Is this a worthwhile program to invest in?
 What assumptions did you make?
 Are there any alternatives at the end of 5 years?
Expectations
 If you make an assumption, back it up and make sure you staywith it throughout