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Develop a spreadsheet model

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1. For a new product, sales volume in the first year is estimated to be 60,000 units and is projected to grow at a rate of 6% per year. The selling price is $110 and will increase by $10 each year. Per-unit variable costs are $23 and annual fixed costs are $1,000,000. Per-unit costs are expected to increase 3% per year. Fixed costs are expected to increase 12% per year. Develop a spreadsheet model to predict the net present value of profit over a three-year period, assuming a 4% discount rate.

Note: Please include Excel worksheet with all the details with your answer.

Reference no: EM132686952

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