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Assignment Name: Hola Kola The Capital Budget Decision Question 2: Need Help with creating an excel sheet other questions to be answered What are the

Assignment Name: Hola Kola The Capital Budget Decision

Question 2: Need Help with creating an excel sheet

other questions to be answered

  1. What are the relevant cash flows? How should you treat the following:
    1. the consultants market study cost?
    2. the potential rental value of the unoccupied annex?
    3. the interest charges?
    4. Workingcapital?

2) Should we consider the erosion of the existing product in the analysis? Why or why not?

3)Calculate the projects' NPV,IRR and payback period

4) Perform sensitivity analyses on sales volume, price, direct labor, materials and energy cost. What do you observe?

5) What are the benefits and risks of undertaking this project?

6) ShouldBebidaSol undertake this project?

7) convert Pesos to U.S. dollarsat the prevailing exchangerate (before or after your analysis

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