Explain fully how to find the values for Net Income, Cash Flow and NPV for the Base case, Worst case and Best case. Give a theory explanation too whether the company is doing ok or not.

E F G I K L M N 0 Depreciation 40000 No NWC Sales ; Best Case Pro Forma Statement 552500 VC 377000 FC 45000 Depreciation 40000 EBIT 90500 Taxes 30770 NI 59730 Worst Case Pro Forma Statement Sales 412500 VC 341000 FC 55000 Depreciation 40000 EBIT -23500 Taxes -7990 NI - 15510 Year Year A B D 1 Base Lower Upper 2 Unit Sales 6000 5500 6500 3 Price per unit 80 75 85 4 VC per unit 60 58 62 5 FC per unit 50000 45000 55000 6 7 8 Base Case Analysis 9 Pro Forma Statement 10 Sales 480000 11 VC 360000 12 FC 50000 13 Depreciation 40000 14 EBIT 30000 15 Taxes 10200 16 NI 19800 17 18 Cash Flows 19 Year OCF NCS CFFA 20 0 -200000 -200000 21 1 59800 59800 22 2 59800 59800 23 3 59800 59800 24 4 59800 59800 25 5 59800 59800 26 NPV $15,565.62 27 28 Sensitivity Analysis For Unit Sales 29 Pro Forma Statement Base Lower Upper 30 Sales 480000 440000 520000 31 VC 360000 330000 390000 32 FC 50000 50000 50000 33 Depreciation 40000 40000 40000 34 EBIT 30000 20000 40000 35 Taxes 10200 6800 13600 36 NI 19800 13200 26400 37 38 Cash Flows 39 Year 40 0 -200,000 -200,000 -200,000 41 1 59800 53200 66400 42 2 59800 53200 66400 43 3 3 59800 53200 66400 44 4 59800 53200 66400 45 5 59800 53200 66400 46 NPV $15.565.62 ($8,225.91) $39.357.14 47 OCF NCS CFFA 0 -200000 -200000 1 99730 99730 2 99730 99730 3 99730 99730 4 99730 99730 5 99730 99730 NPV $159,504.33 OCF NCS CFFA 0 -200000 -200000 1 1 24490 24490 2 2 24490 24490 3 24490 24490 4 24490 24490 5 24490 24490 NPV ($111,719.03)