Goal Kick Sports (GKS) is a retail chain that sells youth and adult soccer equipment. The GKS financial planning group has developed a spreadsheet model to calculate the net discounted cash flow of the first five years of operations for a new store. This model is used to assess new locations under consideration for expansion. (a) Use Excel's Formula Auditing tools to audit this model and correct any errors found. What is the total discounted cash flow (in dollars) calculated by the corrected spreadsheet. (Round you answer to the nearest dollar.) (b) Once you are comfortable that the model is correct, use Scenario Manager to generate a Scenario Summary report that gives Total Discounted Cash Flow for the following scenarios. Tax Rate Scenario 34 37% 27% 37% 21% Inflation Rate 1% 2% 3% 4% Annual Growth of Sales 24% 14% 7% 16% What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dollar.) $ Goal Kick Sports New Store Financial Model Parameters Store Size (square feet) Total Fixed Assets 7,500 $ 280,000 Straight Line Depreciation period 5 Discount Rate Tax Rate 10% 33% Inflation Rate 2% Cost of Merchandise (% of sales) 28% First Year Sales Revenue $ Annual Growth Rate of Sales 950,000 15% Operating Expenses Model Rent Per Square Foot $ 30 Labor Cost $ 150,000 Other Expenses $ 235,000 Year 1 2 3 Sales Revenue $950,000 $1,092,500 $1,256,375 4 $1,444,831 5 $1,661,556 Cost of Merchandise $266,000 $305,900 $351,785 $404,553 $465,236 Labor Cost $150,000 $153,000 $156,060 $159,181 $162,365 Rent $225,000 $299,250 $398,003 $529,343 $704,027 Other Expenses $235,000 $239,700 $244,494 $249,384 $254,372 Net Operating Income $74,000 $94,650 $106,034 $102,370 $75,557 Depreciation Expense $56,000 $56,000 $56,000 $56,000 $56,000 Net Income Before Tax $18,000 $38,650 $50,034 $46,370 $19,557 Income Tax $5,940 $12,755 $16,511 $15,302 $6,454 Net After Tax Income $12,060 $25,896 $33,522 $31,068 $13,103 Plus Depreciation Expense $56,000 $56,000 $56,000 $56,000 $56,000 Annual Cash Flow $68,060 $81,896 $89,522 $87,068 $69,103 Discounted Cash Flow $61,873 $67,682 $67,260 $59,469 $42,908 Total Discounted Cash Flow $299,191