Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello. I need help figuring out the calculation to make a NPV Analysis Grid: NPV vs Discount Rate & Cost of Goods Sold (CoGS) Percent

image text in transcribed

Hello. I need help figuring out the calculation to make a NPV Analysis Grid: NPV vs Discount Rate & Cost of Goods Sold (CoGS) Percent Ranges grid thing like the one in the picture I provided. I need to know how to calculate the figures he made and put in the graph so I can calculate and make a similar grid or whatever they are called myself. For instance what numbers did he use and how to get the answers such as to find the cost of capital for each percent and what the formula is used to determine it. they might not have done it right, I am not sure. just need to know how to make a grid like this step by step calculations such as what numbers to use and how to use the base rate and percent and cost of capital to get the figures to fill the graph grid. Please help and the more you can explain stuff the better. Thanks!

image text in transcribed
AutoSave . Off H New Microsoft Word Document Search Ben B X File Home Insert Design Layout References Mailings Review View Help Table Design Layout Share Comments & Cut Calibri [ Copy 11 ~ A A Aa Ap AaBbCcDd AaBbCcDd AaBbC( AaBbCct Ad B AaBbCCD AaBbCcDd AaBbCcDd Find Paste Gc Replace Dictate Editor Format Painter BIU ab X2 X' A LA 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select v Clipboard Font Paragraph Styles Editing Voice Editor NPV Analysis Grid: NPV vs Discount Rate & Cost of Goods Sold (CoGS) Percent Ranges COGS -> CoGSbase-20% CoGSbase%-10% COGS Base % CoGSbase%+10% CoGSbase%+20% COGS -> i.e base%*0.8 i.e base%*0.9 i.e base%*1.0 i.e base%*1.1 i.e base%*1.2 COGS -> 36% 40.50% 45% 49.50% 54% Cost of Capital 4% $1,364,504 $1,181,016 $997,529 $814,041 $630,554 6% $1,142,689 $971,347 $800,004 $628,661 $457,319 8% $943,197 $782,831 $622,465 $462,099 $301,732 10% $763,288 $612,869 $462,499 $312,030 $161,610 12% $600,612 $459,229 $317,845 $176,462 $35,078 D (Ctrl) * Page 1 of 1 76 words CX " Focus - + 190% Type here to search 9 X 5:03 PM 10/12/2020 E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles and Application

Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.

10th edition

536514119, 536514110, 978-0536514110

More Books

Students also viewed these Finance questions

Question

Do nonfederal mitigation programs exist?

Answered: 1 week ago