\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Revenue t=1 & $ & 18,600,235 & & & & & & \\ \hline Revenue t=2 & $ & 20,975,410 & & & & & & \\ \hline Revenue t=3 & $ & 23,412,000 & & \multirow{8}{*}{\multicolumn{5}{|c|}{\begin{tabular}{l} You may use positive or negative numbers in this \\ section below in any consistent manner. Please \\ make sure your Excel formulas are consistent \\ and that your cash flow numbers are correct. \end{tabular}}} \\ \hline Investment & $ & 55,000,000 & & & & & & \\ \hline Depr. years & & 3 & SL & & & & & \\ \hline Final book value & $ & - & & & & & & \\ \hline FA Sale value & $ & 10,500,750 & & & & & & \\ \hline NWC req't & & 14.50% & & & & & & \\ \hline Costs & & 60.00% & & & & & & \\ \hline \multirow[t]{3}{*}{ Tax rate } & & 21.00% & & & & & & \\ \hline & & & & & & & & \\ \hline & & Year 0 & & Year 1 & & Year 2 & & Year 3 \\ \hline Revenue & $ & - & $ & 18,600,235 & $ & 20,975,410 & $ & 23,412,000 \\ \hline Expenses & $ & - & $ & 11,160,141 & $ & 12,585,246 & $ & 14,047,200 \\ \hline Depreciation & $ & - & $ & 18,333,333 & $ & 18,333,333 & $ & 18,333,333 \\ \hline EBIT & $ & - & $ & (10,893,239) & $ & (9,943,169) & $ & (8,968,533) \\ \hline Taxes & $ & - & $ & (2,287,580) & $ & (2,088,066) & $ & (1,883,392) \\ \hline Net Income (NI) & $ & - & $ & (8,605,659) & $ & (7,855,104) & $ & (7,085,141) \\ \hline OCF & $ & \begin{tabular}{c} - \\ \end{tabular} & $ & 9,727,674 & $ & 10,478,230 & $ & 11,248,192 \\ \hline NWC total & $ & 2,697,034 & $ & 3,041,434 & $ & 3,394,740 & $ & - \\ \hline Change in NWC & $ & (2,697,034) & $ & (344,400) & $ & (353,306) & $ & 3,394,740 \\ \hline Net Capital Spending & $ & (55,000,000) & $ & - & $ & \begin{tabular}{c} - \\ \end{tabular} & $ & 8,295,593 \\ \hline CFFA & $ & (57,697,034) & $ & 9,383,274 & $ & 10,124,924 & $ & 22,938,525 \\ \hline 0 & & .19% & & & & & & \\ \hline \end{tabular} Using the pro forma statements for the previous project and your knowledge of sensitivity analysis determine the input to which the analysis is most sensitive. From the baseline nubmers (which are the values given in the previous problem) use a range of +/10% to determine the sensitivity of our outcome variables (NPV/IRR) to each of the following inputs: Revenue, Expenses, the Initial Investment, the NWC percentage required, the discount rate, and the tax rate. Use a discount rate of 12% to calculate the NPV for the project. Display the sensitivities in a table below, similar to the table that we discussed in the slides. The most sensitive input is the input for which the outcome (NPV) changes the most as a result of a+/10% change in the input. Everything should be done in Excel and should tie back to the actual values from part 1. The The answers here can be hardcoded. Meaning you can calculate the NPV which would result from each change and then type it manually (or copy and paste the value) into the appropriate cell. However, this can also be done using a Data Table in Excel (you will likely need to add some extra tables here to make it work). Should you choose to do so, I will give 10 extra credit point towards this assignment. Which variable is the most sensitive? Why