Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Initial investment Revenues Variable costs Fixed cost Working capital Range Pessimistic Optimistic - 2e - 15% + 15% + 22% - 20% + 50% - 20% + 20% - 20% Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 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 doller.) Project NPV Expected Pessimistic Optimistic Initial investment Revenues Variable costs Foced costs Working capital A. Inputs Initial investment ($ thousands) Salvage value ($ thousands) Initial revenues ($thousands) Variable costs % of revenues) Initial fixed costs ($ thousands) Inflation rate (%) Discount rate (%) Receivables (% of sales) Inventory (% of next year's costs) Tax rate (%) 10,000 2,000 15,000 40.0% 4,000 5.0% 12.0% 16.7% 15.0% 21.0% Year: 0 1 2 3 4 5 6 10,000 B. Fixed assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets 1,580 1,580 -10,000 C. Operating cash flow Revenues Variable expenses Fixed expenses Depreciation Pretax profit 10,000 4,000 4,000 2,000 0 10,500 4,200 4,200 2,000 100 11,025 4,410 4,410 2,000 205 11,576 4,631 4,631 2,000 315 66 249 2,249 12, 155 4,862 4,862 2,000 431 Tax 0 21 43 91 79 Profit after tax Operating cash flow 0 2,000 162 2,162 340 2,340 2,079 0 D. Working capital Working capital Change in working capital Cash flow from investment in working capital 1,200 1,200 -1,200 3,227 154 2,927 1,727 -1,727 0.366 3,073 146 -146 0.366 3,388 161 -161 0.366 2,026 -1,362 1,362 0.208 -2,026 2,026 - 154 0.366 273 3,703 E. Project valuation Total project cash flow Discount factor PV of cash flow Net present value 2,008 0.712 1,933 0.797 1,541 0.893 3,606 0.507 -11,200 1.000 -11,200 -2,731.2 2,088 0.636 1,327 0.567 244 1,429 2,101 1,827