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1. (10%) Using the project cost structure calculations discussed in class, calculate the customerpri

1. (10%) Using the project cost structure calculations discussed in class, calculate the customerprice for a project requiring the following:Senior Engineer:$2000/week for 6 weeksJunior Engineer:$1500/week for 12 weeksConfiguration Mgmt:$900/week for 5 weeksTest and Integration:$700/week for 3 weeksOverhead:75%Other Direct Costs:$20,000G&A:25%Profit:7%Show your work for full credit! (Suggestion: Copy/paste cells as an Excel object intoWord.)2. (10%) Your team just completed the cost estimates for your project. If accepted, you wouldneed an initial investment of $200,000 in Research and Development. There will beconstruction costs in the first year of $350,000. Annual sales of $300,000 will begin in year2 and continue through year 5. Your annual operating costs will be $50,000 for each yearyou sell the product. If the discount rate is 12%, what is the NPV for this project? Shouldyou invest in this project based on the NPV?Show your work for full credit! (Suggestion: Copy/paste cells as an Excel object intoWord.)3. (10%) What is the IRR for the project in problem #6? If the Minimum Attractive Rate ofReturn (MARR) is 20%, would you recommend investing in this project? Discuss anyreasons that you might not invest in a project even if it exceeds the MARR.Show your work for full credit! (Suggestion: Copy/paste cells as an Excel object intoWord.)

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