Question
Calculate the project's NPV, IRR, payback period, and discounted payback. Use 18.20% as WACC Perform sensitivity analyses on sales volume, price, direct labor, materials, and
Calculate the project's NPV, IRR, payback period, and discounted payback. Use 18.20% as WACC Perform sensitivity analyses on sales volume, price, direct labor, materials, and energy cost. What do you observe? Scenario 1. Perform a capital budgeting analysis with the information provided in the case (base scenario). Scenario 2. You have been advised by the consultants that the energy costs, the labor costs, and the material costs are likely to rise by 5% a year, starting in Year 2. The consultants do not think that you can pass the extra cost through. What do you observe? Scenario 3. You have been advised by the consultants that the energy costs, the labor costs, and the material costs are likely to rise by 5% a year, starting in Year 2. The consultants think that you can pass part of the extra cost through. You should be able to increase the price per unit by 5%, but the volume would decrease by 2%. What do you observe?
Appendix 1. Bebida Sol-Income Statements for the Year Ending December 31 (thousands of pesos) Appendix 2. Bebida Sol-Balance Sheet as of December 31 (thousands of nesos)Step by Step Solution
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