Conduct Sensitivity Analysis:

I am able to come up with the first row of answers (for the investment) and the expected NPV (by changing the % in the spreadsheet), but after that I am lost??

Here is the question (I've attached a word doc with the details because the website will not allow me to paste formatted tables. :

Blooper's analysts have come up with the following revised estimates for its magnoosium mine Project NPV: Pessimistic / Expected / Optimistic:

"Conduct a sensitivity analysis for each variable and range and compute the NPV for each. UseSpreadsheet 10.1and accompanying data as a starting point for the analysis"

Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 25% - 15% Revenues - 20% + 25% Variable costs + 15% - 20% Fixed cost + 40% - 45% Working capital + 50% - 20% 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 Here is the spreadsheet: A. Inputs Initial investment ($ thousands) Salvage value ($ thousands) Initial revenues ($ thousands) Variable costs (% of revenues) Initial fixed costs ($ thousands) Inflation rate (%) Discount rate (%) Receivables (% of sales) Inventory (% of next year's costs) Tax rate (%) Year: 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 10,000 2,000 15,000 40.0% 4,000 5.0% 12.0% 16.7% 15.0% 21.0% 0 1 2 3 4 5 6 10,000 1,580 1,580 -10,000 15,00 0 6,000 4,000 2,000 3,000 630 15,750 6,300 4,200 2,000 3,250 683 16,53 8 6,615 4,410 2,000 3,513 738 17,36 4 6,946 4,631 2,000 3,788 796 18,23 3 7,293 4,862 2,000 4,078 856 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 1,500 1,500 -1,500 -11,500 1.000 -11,500 6,113.1 2,370 4,370 2,568 4,568 2,775 4,775 2,993 4,993 3,221 5,221 4,075 2,575 -2,575 4,279 204 -204 4,493 214 -214 4,717 225 -225 3,039 -1,679 1,679 0.408 0.408 0.408 0.408 0.250 1,795 0.893 1,603 4,364 0.797 3,479 4,561 0.712 3,246 4,768 0.636 3,030 6,900 0.567 3,915 0 -3,039 3,039 4,619 0.507 2,340 Answer is complete but not entirely correct. Project NPV Pessimistic Initial investment Revenues Variable costs Fixed costs Working capital $3,992 correct $2,079selected answer incorrect $7,030selected answer incorrect $8,558selected answer incorrect $9,170selected answer incorrect Expected $6,113 correct $6,113 correct $6,113 correct $6,113 correct $6,113 correct Optimistic $7,386 correct $14,019selected answer incorrect $4,890selected answer incorrect $3,362selected answer incorrect $4,890selected answer incorrect