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Determining the viability of long - term capital investments is a fundamental aspect of corporate accounting. In this assignment, you use Excel to make and
Determining the viability of longterm capital investments is a fundamental aspect of corporate accounting. In this assignment, you use Excel to make and interpret specified calculations for a capital investment analysis that includes sensitivity and whatif analyses for a proposed football training facility.
Instructions
Read the following scenario and use the Week Assignment Template XLSX
Download Week Assignment Template XLSX to complete this assignment.
Specific directions are included in the template. Make sure to complete all tabs for Parts and and follow the directions given in each.
Note that you must add functionality to the appropriate spreadsheets to make the proper calculations.
Scenario
Use the following scenario for your work:
Kicking It Corp. is planning to open a football camp in Arizona, which will require a land purchase and facilities development that includes fields, sleeping and dining facilities, maintenance equipment, and other capital expenditures. Each year, the camp will run for eight oneweek sessions. The company will also incur operational expenses.
The estimates in the following table have been shared with company leadership and investors:
Estimated Figures
Item
Amount
Land $
Facilities $
Annual Cash Flow total yearly players' fees $
Annual Cash Outflows $
Estimated Useful Life of Facilities years
Facilities Salvage Value $
Discount Rate
I have already figured this section out.
I need help with this:
Read the assignment scenario in Blackboard and complete the following in the space provided below.
Conduct Sensitivity Analysis using the following values:
A Recalculate the new net present value NPV and payback period using the following data:
players attend the camp.
discount rate.
Annual Cash flow projection $
Annual Cash Outflow projection $
Please show work, so I can understand how it's done.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To conduct the sensitivity analysis well first recalculate the NPV and payback period using the new ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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