Based on our DCF Model:

Consider 12 scenarios of inflation assumptions posted in the tab Assumptions in Group Assignment 2 Model 2 Inflation Analysis Fall 2022.xlsx. 6 scenarios cover assumptions relating to inputs cost inflation and 6 scenarios cover assumptions relating to output price inflation.

Note 1: Baseline model assumptions have been changed throughout the entire range of assumptions (e.g. volumes of production, prices, capital requirements, etc).

Note 2: If you are lacking specific assumption in the file provided with this assignment, copy it from our DCF model used in class and flag this assumption (e.g. red-shade the cell) footnoting it as being placed from the original DCF model.

1) Rebuild the Baseline Model 2) Run 12 scenarios, for each calculating: NPV and NPV Profile Internal Rate of Return (IRR, %) Profitability Index (PI) EBIT, average, annual Sales, average, annual Discounted Payback, year CF positive, year Times Interest Earned Ratio Net Profit Margin Ratio

3) Provide visualizations and analysis of key profitability and performance metrics sensitivity to inflation risk. Make sure you discuss how different sources of inflation influence key performance metrics. 4) Provide visualizations and analysis of free cash flows available for distribution to investors and the entrepreneur. 5) Provide visualizations and analysis of impact funds available during the forecast period.