Bloopers analysts have come up with the following revised estimates for its magnoosium mine:
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.)
Range Optimistic Pessimistic + 40 % Initial investment Revenues Variable costs Fixed cost + Working capital A. Inguts Initial investments thousands Salvage values thousands Initial revenues is thousands Variable costs of revenues Initial fied costs is thousands Inflation rate Discount rate Receivables of sales) Inventory of next year's costs Tax rate() 15.000 2.000 15.000 40.0% 4.000 5.0 12.05 16.7% 15.0% 21.0 B. Fixed assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets 15.000 15,000 15,000 6.000 4,000 15.750 6.300 C. Operating cash flow Revenues Variable expenses Fwed expenses Depreciation Pretax profit 16.538 6,615 4,410 17,364 6,946 4,631 18.233 7.293 2.000 3.000 3,078 2,513 2,788 586 1.985 2.203 49855.203 1.778 Profit after ta Operating cash flow 1.580 4580 4,778 5.431 D. Working capital Working capital Change in working capital Cash flow from investment in working capital 1.500 1,500 -1.500 4,0254 2.575 2.575 0408 1019 .279 206 204 409 4,717 225 225 04080408 214 3.099 1.679 1.679 0.250 E. Project valuation Total project cash flow Discount factor PV of cash flow Net present value 16.500 1.000 16.500 1870.1 2.00 0.893 1790 4574" 0797 3.646 0.712 396 4979 0.636 3.164 7110" 02567 4034 4,619 0.507 2.340 Project NPV Expected Pessimistic Optimistic Initial investment Revenues Variable costs Fixed costs Working capital Range Optimistic Pessimistic + 40 % Initial investment Revenues Variable costs Fixed cost + Working capital A. Inguts Initial investments thousands Salvage values thousands Initial revenues is thousands Variable costs of revenues Initial fied costs is thousands Inflation rate Discount rate Receivables of sales) Inventory of next year's costs Tax rate() 15.000 2.000 15.000 40.0% 4.000 5.0 12.05 16.7% 15.0% 21.0 B. Fixed assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets 15.000 15,000 15,000 6.000 4,000 15.750 6.300 C. Operating cash flow Revenues Variable expenses Fwed expenses Depreciation Pretax profit 16.538 6,615 4,410 17,364 6,946 4,631 18.233 7.293 2.000 3.000 3,078 2,513 2,788 586 1.985 2.203 49855.203 1.778 Profit after ta Operating cash flow 1.580 4580 4,778 5.431 D. Working capital Working capital Change in working capital Cash flow from investment in working capital 1.500 1,500 -1.500 4,0254 2.575 2.575 0408 1019 .279 206 204 409 4,717 225 225 04080408 214 3.099 1.679 1.679 0.250 E. Project valuation Total project cash flow Discount factor PV of cash flow Net present value 16.500 1.000 16.500 1870.1 2.00 0.893 1790 4574" 0797 3.646 0.712 396 4979 0.636 3.164 7110" 02567 4034 4,619 0.507 2.340 Project NPV Expected Pessimistic Optimistic Initial investment Revenues Variable costs Fixed costs Working capital
