I need this answered ASAP!  Thank you !!!!!!!!

The following table presents sales forecasts for Golden Gelt Giftware.
The unit price is $40. The unit cost of the giftware is $25. Year Unit
Sales 1 22,000 2 30,000 3 14,000 4 5,000 Thereafter 0 It is expected
that net working capital will amount to 20 percent of sales in the
following year. For example, the store will need an initial (Year 0)
investment in working capital of .20 × 22,000 × $40 = $176,000. Plant
and equipment necessary to establish the Giftware business will
require an additional investment of $200,000. This investment will be
depreciated using MACRS and a 3-year life. After 4 years, the
equipment will have an economic and book value of zero. The ?rm?s tax
rate is 35 percent. What is the net present value of the project? The
discount rate is 20 percent.

NPV is $212,021.48.  I have made an Excel spreadsheet available for
you to download at http://rapidshare.de/files/2221631/Project_Evaluation.xls.html
that shows the calculations.

Sincerely,

Wonko

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Request for Answer Clarification by buffcode-ga on 06 Jun 2005 14:56 PDT

For some reason, I cannot open up the spreadsheet to see the
calculations.  Can you reattach it some other way?

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Request for Answer Clarification by buffcode-ga on 06 Jun 2005 15:01 PDT

Nevermind - I got it to open.  Thank you.

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Clarification of Answer by wonko-ga on 06 Jun 2005 17:43 PDT

I am glad you got it to open.

Wonko