Answers are in thousands of dollars A Inputs Initial investment ($ thousands) 10,000 Salvage value ($ thousands) 2,000 Initial revenues ($ thousands) 15,000 Variable costs ( of revenues) 40 0 Initial fixed costs ($ thousands) 4,000 Inflation rate ( ) 5 0 Discount rate ( ) 12 0 Receivables ( of sales) 16 7 Inventory ( of next year's costs) 15 0 Tax rate ( ) 21 0 Year 0 1 2 3 4 5 6 B Fixed assets Investments in fixed assets 10,000 Sales of fixed assets 1,580 Cash flow from fixed assets 10,000 1,580 C Operating cash flow Revenues 15,000 15,750 16,538 17,364 18,233 Variable expenses 6,000 6,300 6,615 6,946 7,293 Fixed expenses 4,000 4,200 4,410 4,631 4,862 Depreciation 2,000 2,000 2,000 2,000 2,000 Pretax profit 3,000 3,250 3,513 3,788 4,078 Tax 630 683 738 796 856 Profit after tax 2,370 2,568 2,775 2,993 3,221 Operating cash flow 4,370 4,568 4,775 4,993 5,221 D Working capital Working capital 1,500 4,075 4,279 4,493 4,717 3,039 0 Change in working capital 1,500 2,575 204 214 225 1,679 3,039 Cash flow from investment in working capital 1,500 2,575 204 214 225 1,679 3,039 0 408 0 408 0 408 0 408 0 250 E Project valuation Total project cash flow 11,500 1,795 4,364 4,561 4,768 6,900 4,619 Discount factor 1 000 0 893 0 797 0 712 0 636 0 567 0 507 PV of cash flow 11,500 1,603 3,479 3,246 3,030 3,915 2,340 Net present value 6,113 1 Blooper's analysts have come up with the following revised estimates for its magnoosium mine Conduct a sensitivity analysis for each variable and range and compute the NPV for each Use S preadsheet 10 1 and accompanying data as a starting point for the analysis (Do not round intermediate calculations Negative amounts should be indicated by a minus sign Enter your answers in thousands rounded to the nearest whole dollar ) Blooper's analysts have come up with the following revised estimates for its magnoosium mine Conduct a sensitivity analysis for each variable and range and compute the NPV for each Use S preadsheet 10 1 and accompanying data as a starting point for the analysis (Do not round intermediate calculations Negative amounts should be indicated by a minus sign Enter your answers in thousands rounded to the nearest whole dollar )

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Answers are in thousands of dollars A. Inputs Initial investment ($ thousands) 10,000 Salvage value ($ thousands) 2,000 Initial revenues ($ thousands) 15,000 Variable costs

Answers are in thousands of dollars

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A. Inputs
Initial investment ($ thousands)	10,000
Salvage value ($ thousands)	2,000
Initial revenues ($ thousands)	15,000
Variable costs (% of revenues)	40.0%
Initial fixed costs ($ thousands)	4,000
Inflation rate (%)	5.0%
Discount rate (%)	12.0%
Receivables (% of sales)	16.7%
Inventory (% of next year's costs)	15.0%
Tax rate (%)	21.0%

Year:	0	1	2	3	4	5	6
B. Fixed assets
Investments in fixed assets	10,000
Sales of fixed assets							1,580
Cash flow from fixed assets	-10,000						1,580

C. Operating cash flow
Revenues		15,000	15,750	16,538	17,364	18,233
Variable expenses		6,000	6,300	6,615	6,946	7,293
Fixed expenses		4,000	4,200	4,410	4,631	4,862
Depreciation		2,000	2,000	2,000	2,000	2,000
Pretax profit		3,000	3,250	3,513	3,788	4,078
Tax		630	683	738	796	856
Profit after tax		2,370	2,568	2,775	2,993	3,221
Operating cash flow		4,370	4,568	4,775	4,993	5,221

D. Working capital
Working capital	1,500	4,075	4,279	4,493	4,717	3,039	0
Change in working capital	1,500	2,575	204	214	225	-1,679	-3,039
Cash flow from investment in working capital	-1,500	-2,575	-204	-214	-225	1,679	3,039
		0.408	0.408	0.408	0.408	0.250
E. Project valuation
Total project cash flow	-11,500	1,795	4,364	4,561	4,768	6,900	4,619
Discount factor	1.000	0.893	0.797	0.712	0.636	0.567	0.507
PV of cash flow	-11,500	1,603	3,479	3,246	3,030	3,915	2,340
Net present value	6,113.1

Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use S preadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.) Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use S preadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.)