Question
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
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.
Scenario | ||||
---|---|---|---|---|
1 | 2 | 3 | 4 | |
Tax Rate | 37% | 23% | 39% | 26% |
Inflation Rate | 4% | 3% | 2% | 1% |
Annual Growth of Sales | 23% | 15% | 9% | 13% |
What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dollar.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started