4 5 6 7 B8 rmat Painter Clipboard xv fx B Project Description and Details Font Alignment Number > Styles Cells Editing Add-ins This company is based in Massachusetts and distributes their flavored seltzers nationally. While they have a large, loyal customer following, the company has exchanged hands multiple times. The current owners want out of the business, but it is uncertain as to why this is P T V D E F G H | J K L M N 0 Q R S U This company is based in Massachusetts and distributes their flavored seltzers nationally. While they have a large, loyal customer following, the company has exchanged hands multiple times. The current owners want out of the business, but it is uncertain as to why this is the case. The company is undervalued and the 8 sale price reflects this. 9 10 11 Calculation of Minimum Payback Period: 12 13 14 15 NPV of Projected Cash Flows 16 17 18 Projected Revenues at annual growth rate 19 Projected Expenses at 54% of Revenue 20 Annual Cash Flows 21 Discount rate for each year (6%) 22 Present value of cash flows 23 24 NPV of Projected Cash Flows 25 26 27 Internal Rate of Return (IRR): 28 29 30 Project Cost (Initial First Year Cash Investment) Flow Annual Growth Rate (5 years) Expenses as a Payback percentage of Period NPV IRR Revenues $15,000,000 $8,500,250 3.25% 54% Years Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Year 5 Cash Flow Flow Problem Overview P1-Buy Snappal P2-Buy PolarBear P3-Man Coffee P4-Man Caffine Ready Accessibility: Investigate 100%