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This questiоn is wоrth 30 pоints. Pleаse use the Excel file to finish this question. Templаte_Mаkeup Final exam essay question 2026-1.xlsx Here are the details of the question: BMBA 9460 group is carrying out a set of analysis to decide whether to start a new company called MBA Starters Inc (MS). If we start MS in 2026, MS will have no sales in 2026. MS is expected to have sales of $90 million in 2027 and the sales will grow at the rate of 20% in 2028; 30% in 2029; 20% in 2030; and 3% from 2031 on forever. We expect that net income will be 48% of sales (based on the estimation that EBIT to be 60% of sales and we have to pay a corporate tax rate of 20%). We expect that increases in net working capital requirements to be 9% of any increase in sales, capital expenditures to be 7% of sales, and depreciation expenses to be 6% of sales. The weighted average cost of capital is estimated to be 16%. To start the company, we need to invest $600 million at the end of 2026. As a potential CEO, would you recommend us to start the new company based on the NPV? What’s the potential value of this decision? (hint: The potential value can be measured using the NPV of the project.) If we are planning for an IPO at the beginning of 2027 to sell all the equity for 30 million shares, what is the fair price for each share of our company stock? What’s the internal rate of return (IRR) of the project assuming that we invest and sell the firm at the beginning of 2032? Would you recommend us to start the new company based on the IRR? More specifically, (2 points) the sales in 2032 is calculated as __________× _________ = __________; (2 points) the net income in 2031 is calculated as __________× _________ = __________; (2 points) the depreciation in 2030 is calculated as __________× _________ = __________; (2 points) the capital expenditure in 2029 is calculated as __________× _________ = __________; (3 points) the increase in the net working capital in 2028 is calculated as __________________________________________ = __________; (3 points) the free cash flow in 2027 is calculated as ___________________________________________________________ = __________; (3 points) the terminal firm value at the beginning of 2032 is calculated as ___________________________________________________________ = __________; (3 points) the total firm value at the beginning of 2027 is calculated as ___________________________________________________________ = __________; (2 points) the fair stock price at the IPO is calculated as ________________________________________________________ = __________per share; (3 points) the NPV of this project before we make any investment is calculated as (You can either write the formula for the NPV calculation or the financial keys that you use to calculate the NPV here.) ___________________________________________________________ = __________; (1 point) based on this NPV, we ___________________(should or shouldn’t) start the new company. (3 points) The internal rate of return (IRR) of the project assuming that we invest and sell the firm at the beginning of 2032 is ___________________________%. (1 point) based on this IRR, we ___________________(should or shouldn’t) start the new company. If you used the Excel template file, please upload your completed Excel file here (Click "Insert" function above -> "Document" -> "Upload Document" -> Click "Upload File" to browse your computer -> Choose your Excel file -> Click "Submit") . If you upload your Excel file, please name it LastName_FirstName_Essay.xlsx. If you did not use the Excel file, you may type your answer in the text field.