Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Initial investment Revenues Range Pessimistic Optimistic + 30% 25% - 15% + 20% + 15% - 20% + 30% - 20% Working capital + 30% - 50% Variable costs Fixed cost 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 dollar.) Project NPV Pessimistic Expected Optimistic Initial investment Revenues Variable costs Fixed costs Working capital 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% B. Fixed assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets C. Operating cash flow Revenues Variable expenses Fixed expenses Depreciation Pretax profit Tax Profit after tax Year: 0 1 2 3 4 5 6 10,000 -10,000 15,000 15,750 16,538 17,364 18,233 6,000 6,300 6,615 6,946 7,293 4,000 4,200 4,410 4,631 4,862 2,000 2,000 2,000 2,000 2,000 3,000 3,250 3,513 3,788 4,078 630 683 738 796 856 2,370 2,568 2,775 2,993 3,221 4,370 4,568 4,775 4,993 5,221 1,580 1,580 Operating cash flow 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 Discount factor PV of cash flow Net present value -11,500 1,795 4,364 4,561 4,768 6,900 4,619 1.000 0.893 0.797 0.712 0.636 0.567 0.507 -11,500 1,603 3,479 3,246 3,030 3,915 2,340 6,113.1