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Grant Corp invested $1.8M on 4/1/2019. At the time, the project manager assigned forecasted that the cost of capital was 17% and the profit change
Grant Corp invested $1.8M on 4/1/2019. At the time, the project manager assigned forecasted that the cost of capital was 17% and the profit change for year ended '19 - '23 were as follows: 300K, 450K, 650K, 825K and 850K, with a NPV of $90,850. Now that 2022 is underway, and results are becoming more clear, it appears that the profit increase for year ended '22 will only be 675K and is likely to be within 10% of 675K +/- the following year. Management is now concerned that this project might end up unprofitable overall. Using the Goal Seek, what profit change would be required in year ended '23 for the project to be "successful" and earn a profit? Do you think it is likely to happen? Why or why not? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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