Can I get help on what is the formulas for this ?

The management feels that the estimate for the first year's Sales Revenue, Cost of Goods Sold, Selling Costs, and General and Administrative Expenses may not be as certain. Since these four items are critical to the success of the operations, the management would like you to perform a sensitivity analysis to see what would the NPV look like when these numbers fluctuate within a range of +/- 20% of the estimate. That is, provide estimates of costs and revenues for this range which should be 80, 85, 90, 95, 100, 105, 110, 115, and 120% of the standard estimates.

(Hint: When you are formulating for these four items, add a certainty factor to the formulas. The certainty factor should not be hardcoded in the formulas. Always keep the input assumptions in a separate area in your worksheet. Use the Create Data Table under Data to perform the sensitivity analysis.)

e) Produce the following graphs to present to the management:

• Sales and total expenses over the five-year period. Mark where the business starts to make a profit;

• The impact of fluctuations of the initial estimates for the cost of goods sold percentage; sales revenue; and the general and administrative expenses on the NPV.

(Hint: The horizontal axis should be from 80% to 120% of the original estimates, whilst the vertical axis should be the NPV. Remember, the 100% point is your original estimates. The curves for sales, cost of goods sold, and the general and administrative expenses should be on the same graph.)