Brazils inflation rate being volatile, perform sensitivity analyses on the inflation rate and discuss the viability of the investment based on NPV.

2 3 4 5 - 100000 -20000 German Banks at 6% interest Year Equipment Other Cash Flow Inflated Cash Flow Loan Payment Cash Flow-PMT Present Value (10% discount) 25716 28030 -4770 23260 28663 34054 4770 29284 36468 47227 -4770 42257 43887 52413 61950 116333 4770 4770 57180111563 21146 2420231898 3605569272 NPV 65573 1 2 3 4 5 German Vendor at 2% interrest Year Equipment -100000 Other -20000 Cash Flow Inflated Cash Flow Loan Payment Cash Flow-PMT Present Value (10% discount) 25716 28030 -4734 23297 28663 34054 4734 29321 36468 47227 -4734 42493 4388752413 61950 116333 4734 4734 57217 111599 211792423231926 39080 69294 NPV 65711 This option would require the company to pay R$ 30000 upfront which reduces the amount of cash flow for future projects. -100000 -20000 25716 US Banks at 8% interest Year Equipment Other Cash Flow Inflated Cash Flow Loan Payment Cash Flow - PMT Present Value (10% discount) 52413 116333 28030 -4860 23170 28663 34054 4860 29194 36468 43887 47227 61950 -48604860 4236757090 111473 21064 24128 31831 3899469216 NPV 65232 2 3 4 5 - 100000 -20000 German Banks at 6% interest Year Equipment Other Cash Flow Inflated Cash Flow Loan Payment Cash Flow-PMT Present Value (10% discount) 25716 28030 -4770 23260 28663 34054 4770 29284 36468 47227 -4770 42257 43887 52413 61950 116333 4770 4770 57180111563 21146 2420231898 3605569272 NPV 65573 1 2 3 4 5 German Vendor at 2% interrest Year Equipment -100000 Other -20000 Cash Flow Inflated Cash Flow Loan Payment Cash Flow-PMT Present Value (10% discount) 25716 28030 -4734 23297 28663 34054 4734 29321 36468 47227 -4734 42493 4388752413 61950 116333 4734 4734 57217 111599 211792423231926 39080 69294 NPV 65711 This option would require the company to pay R$ 30000 upfront which reduces the amount of cash flow for future projects. -100000 -20000 25716 US Banks at 8% interest Year Equipment Other Cash Flow Inflated Cash Flow Loan Payment Cash Flow - PMT Present Value (10% discount) 52413 116333 28030 -4860 23170 28663 34054 4860 29194 36468 43887 47227 61950 -48604860 4236757090 111473 21064 24128 31831 3899469216 NPV 65232