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Create an Excel Spreadsheet in a way that you can use it for what-if analysis. . Base case Inputs: 4-year life of the project $15/unit
Create an Excel Spreadsheet in a way that you can use it for what-if analysis. . Base case Inputs: 4-year life of the project $15/unit Price of the product $5/unit Cost of products $1000/year operating costs 1000 units First-year production 10% Increase in production each year $20,000 Initial investment depreciated with MACRS 3 year recovery 28% tax rate . Answer the following question for "what if analysis" 1. What is the IRR for the Base case? 2. What is the IRR if the volume produced does not increase by 10%/year, but only increased 1%/yr? 3. What is the IRR if the price is only $13/unit? 4. What is the IRR if the tax rate increases to 49%? 5. What is the IRR if the initial investment is $22,000
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