1. Use excel spreadsheet to evaluate the Samsing Company Proposal

2.Conduct sensitivity analysis that focuses on the sale price. For the best case scenario increase the sale price by 10 percent. For the worst-case scenario, decrease the sales price by 10%. This means that you will have three different situations

3.You must provide two spreadsheets for each of the three situations. One is the basic spreadsheet the other is the converted by the spreadsheet to show the formulas.

4. what do you recommend? Explain.

Maximize the use of formulas. Note: this includes using cell references rather than numbers in the formulas

1 Project life 4 years

2 Capital expenditure 25,000,000

3 Depreciation straight line 4 years

4 Sales price 25,000 units in 1year, 95,000 in 2 years, 70,000 in year 2 and 25,000 in year 4

The sales prices is expected to remain constant at 580

5 Cost of goods sold 60% 0f sales

6 selling /general administrative expenses

year 1 1,500,000

yr2 1,750,000

yr3 1,000,000

yr4 500,000

R&D 1,500,000

Initial investment in net working capital 1,250,000 then it increases by 10,000 for each of three years and finally is fully recovered in the final year

Tax rate 38%, Cost of capital 14%