Blooper's analysts have come up with the following revised estimates for its magnoosium mine:

Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 30% 15% Revenues 20% + 20% Variable costs + 25% 25% Fixed cost + 20% 20% Working capital + 35% 30% Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use preadsheet 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 Optlmlstlc Initial investment Revenues Variable costs Fixed costs Working capital AutoSave OFF Spreadsheet_10_1 Q Home Insert Draw Page Layout Formulas Data Review View Acrobat Tell me Share Comments Calibri (Body) 11 AA do v General Conditional Formatting v Insert 2 Format as Table x Delete Paste BI UV A $ ~ % 9 Format Sort & Ideas Sensitivity Create and Share Cell Styles v Find & Filter Select Adobe PDF N29 X V fx A B C D E G H K M N O Q R S U V W A. Inputs Initial investment ($ thousands) 15,00 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% Year: 1 2 5 6 B. Fixed assets Investments in fixed assets 15,00 Sales of fixed assets 1,580 Cash flow from fixed assets -15,000 1,580 C. Operating cash flow Revenues 15,000 15,750 16,538 17,364 18,233 Variable expenses 6,000 6,300 6,615 6,946 7,293 Fixed expenses 4,000 4,200 4.410 4,631 4,86 Depreciation 3,000 3,000 3,000 3,000 3,000 Pretax profit 2,000 2,250 2.513 2,788 3,078 Tax 420 473 528 586 646 Profit after tax 1,580 1,778 1,985 2,203 2,431 Operating cash flow 4,580 4,778 4,985 5,203 5,431 D. Working capital Working capital 1,500 4,075 4,279 4,493 1,717 3,039 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 16,500 2,005 4,574 4,771 4,978 7,110 4,619 Discount factor 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV of cash flow -16,50 1,790 3,646 3,396 3,164 4,034 2,340 Net present value 1, 870.1 41 42 43 Sheet1 + - + 100%