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Excel file attached. pls need urgent help. It is scenario analysis, data table, solver, npv, irr, and data analysis Price per can $6, Cost per
Excel file attached. pls need urgent help. It is scenario analysis, data table, solver, npv, irr, and data analysis
Price per can $6, Cost per can $1.50 Project Parameters: Suppose, we can sell 100,000 cans of shark attractant per year at a price of $6.00 per can. It costs u per can to make the attractant. A new product such as this one typically has only a three-year life. W 15% return on new products. Fixed costs for the project will run $20,000 per year. We will need to invest a total of $150,000 in manufacturing equipment. For simplicity, we will assum $150,000 will be fully depreciated over the three year life of the project. The project will require an initial $20,000 investment in net working capital. The tax rate is 35%. Questions: 1. Set-up the problem below in the space provided. Calculate the NPV. Calculate the IRR. 2. Do a Scenario Analysis with the three following scenarios: a. Best Case - Price per can $10, Cost per can $2.50 b. Base Case - Price per can $6, Cost per can $3.50 c. Worst Case - Price per can $5, Cost per can $4 You must use Scenario Manager to show your results. 3. Do a Sensitivity Analysis where you vary the number of cans from 60,000 to 120,000. You must use Data Table to show your results. 4. Do the following break-even analyses using the base case: a. Break-even price so that NPV = 0 b. Break-even quantity so the NPV = 0 c. Break-even cost per can so that NPV = 0 You must use Goal Seek/Solver to show your results. 5. Assume that the price per can is a random draw between (4, 10) and the cost per can is a random (2, 8). Take a sample of 1,000 NPVs. Draw a histogram showing your results. You must use Data Analysis - Histogram to show your results. Note: In each of the questions, remember to reset all your values to the base case given description of the problem. Number of cans Price per can Cost per can Fixed Cost Tax rate Discount rate Initial Investment 100000 6 3.5 20000 35% 15% 150000 0 Revenue COGS Gross Profit Fixed Cost EBITDA Depreciation EBIT Tax $ $ $ $ $ 1 600,000 $ 350,000 250,000 20,000 230,000 2 600,000 $ 3 600,000 Net Income Add back Depreciation OCF NCS $ (150,000) NWC CFFA $ (20,000) NPV IRR 0 $ Hint: It should be $224,448.92 for the Base Case. 20,000 0 per can. It costs us about $3.50 y a three-year life. We require a licity, we will assume that this the IRR. 20,000. per can is a random draw between e base case given in theStep by Step Solution
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