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Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 49% 25% Revenues 25% +

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Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 49% 25% Revenues 25% + 29% Variable costs + 26% 26% Fixed cost + 35% 35% Working capital + 39% 35% 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 Optimistic Initial investment Revenues Variable costs Working capital A. Inputs Initial investment (5 thousands} Salvage value (S thousands) Initial revenues (S thousands} Variable costs [% of revenues) Initial fixed costs [$ thousands) Inflation rate [%) Discount rate [96) Receivables [% of sales) Inventory (% of next year's costs} Tax rate [96) 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 Operating cash flow D. Working capital Working capital Change in working capital Cash flow from investment in working capital E. Project valuation Total project cash flow Discount factor PV of cash flow Net present value 10,000 2,000 15,000 40.0% 4,000 5.0% 12.0% 16.7% 15.0% 21.0% Year: 0 10,000 -10,000 1,500 1,500 -1,500 -11,500 1.000 -11,500 6,113.1 15,000 6,000 4,000 2,000 3,000 630 2,370 4,370 4,075 2,575 -2,575 0.408 1,795 0.893 1,603 15,750 6,300 4,200 2,000 3,250 683 2,568 4,568 4,279 204 -204 0.408 4,364 0.797 3,479 16,538 6,615 4,410 2,000 3,513 738 2,775 4,775 4,493 214 -214 0.408 4,561 0.712 3,246 17,364 6,946 4,631 2,000 3,788 796 2,993 4,993 4,717 225 -225 0.408 4,768 0.636 3,030 18,233 7,293 4,862 2,000 4,078 856 3,221 5,221 3,039 -1,679 1,679 0.250 6,900 0.567 3,915 1,580 1,580 -3,039 3,039 4,619 0.507 2,340

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