given the above results, explain why the firm should or should not invest in the is product line
Recxt 300X Bull X 300 X 300 X t For Sop h ix PHEX PHE X i XC X 2 C Apps 0 .docs.google.com/spreadsheets/d/1hwGarGtYMD38NJX404YEMSVPONOdf/editngid 1331372980 su portal now - G... 03 Outlook Web App Rookie 2019 Sum.. UMD SGA Gover My Orders Cheg. VitasourceConte. Simulations For Finance Class XLSX File Edit View Insert Format Data Tools Hellcats = - 100% 1 0 0 12 + 1 n dine + B + A + + 00 1 19,000 $ 1,000 $ $10,000,000 $ 2 3 4.000 38,800 1,000 $ 1,000 5 4,000,000 $3,800,000 4 35,000 9505 1,100,000 $ 7 35.500 Terminal 8 35.000 9 3500 5 15.000 903 100,000 $ 6 36.000 9505 4,200,000 $ $ 53,725,000 5 11.500,000 $30,000 $30,000,000 Cost of goods sold $ $ Total cost of poods sold Gronprofits Operating expenses $ 1.500.000 $ 12,000,000 $ 13,500,000 $ 16,500,000 1.500.000 $13.500.000 15,100,000 $1,900,000 $ 1,500,000 $15.520.000 $17,020,000 $21,780,000 $ 5 1,500 0005 1.500,000 $ 1.500.000 15.200 0005 14,400,000 $34.400.000 15.700.000 $1, 000 $ 15.900.000 19.400.000 $1,100,000 13,300000 1.500,000 14.200,000 15,700,000 10,025.000 $1,500,000 $14.000.000 $15.500.000 16.000,000 $ 1.500,000 $ 1,500,000 $13,000.000 S 13,600.000 5 15,300,000 $ 15,100,000 $15.750,000 $ 15 500,000 +1 120 000 $ 120.0005 120.000 $ 120,000 5 120.000 120.000 $ 120,000 5 120 000 $ 129,00 5 120.000 20.000.000 20.000.0005 20,000,000 $20,000,000 300000S 0000S Depreciation rate 17 year MACSI Depreciable basis Depreciation Total operating expenses Operating profit (BIT) EBIT1-) at OC T 1-T)-Depreciation $ 20,000,000 $ 2,800,000 $ 2,920,000 13,580,000 1.000 10,948,000 $20,000,000 $ 5,000,000 $ 5,120.000 5 13,700.000 2.368.000 11.263.000 $20.000.000 6000005 .720.000 $ 1.050,000 10,836,000 14,436,000 20.000,000 2.490.000 2,520,000 15,000,000 10,120,000 12,520,000 $20.000000 20.000.000 300.000 $ 1,800 000 $ $ 1,320.0005 1.920,000 $ 16.350.000 16,380,000 9.828.000 9.828.000 11625.000 15,000,000 16.105.000 9.663,000 Depreciable bass Net woring capital AC cevable A payable Change in NWC Salvage value Tove sale Relevant projects 106,000 12.00 12.0 SL R100 101 Apps su portal how - 0 Outibok Web App 3 Rookie, 2019 SUM. UMD SGA Gover... C My Orders Che... VitasourceConte Simula For Finance Class XLSX File Edit View Insert Format Data Tools Help All changes saved in Drive 71000 SSD 128Default ( 1BIGA - GOBYE. (20,900,000) 10,048,000 Relevant projects 13,268,000 14,436,000 12.525,000 11,628,000 11,421,000 11.461.000 87.000 12,528,000 SUMMARY TABLE Baseline case Price sens, $ 41,707,562 540,653,321 57.84% 56.86% 19950 19451% sens. Worst scen. Exp. Scenario 5 41,091,323 541,269,559 $ 59,464,595 526,057,010 $ 42,129.254 59.26% 57.405741142138.0 196.615 1 9746N 2 84.57X 125 201.58N Exp. Sc. St. De 10,577654.59 9.99% 5 0.61% Sensitivity analyse sens. Xchange NPV vs baseline Xchange IRR vs baseline Xchange is baseline Price sem. -2.53% -1.10% -2.53% 101% 1.48% 1,05% 0.69% 105N NPV is most sensitive to 1 point change in price m ounty IRR most sentive to 1 point change in price and quantity Pri most native to 1 point change in price and quantity 1,620,000 1,620.000 5 5 5 $ $ 1,620,000 1,490,000 1.620,000 $ 5 1,620,000 $ $ 1,020,000 1.620,000 1610.000 1.630,000 Break-even analysis Fixed cost cost of goods lease Depreciation 51 Find OF When NPO $ 120,900,000 54,00 311 $4,0068 54.006.813 54,005.813 S4.006.813 54,005,813 54,006,811 54.006.813 54.006.813 CPT PT-OCE 54.006.813 30 7,303 A/C Break-even Cash break even Financial break-even
