Answered step by step
Verified Expert Solution
Question
1 Approved Answer
HI! PLEASE help with 3A, 4, 5, and 7!!!!!!!! Required information Sanders Company has an opportunity to manufacture and sell a new product for a
HI! PLEASE help with 3A, 4, 5, and 7!!!!!!!!
Required information Sanders Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs and revenues for the new product Annual revenues and costs: When the project concluder in five years the working capital wil be released for investment elsewhere in the company. Click here to downlead the Exceltemplate, Which you will use to aniwer the questiong that followe Clicknere foca brief tutorialon Goal Segk in Excel 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return if the company/5 hurdie rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18s? 5. If the company wants to achieve on 18% retum on this investment, what is the maximum amount that is can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute yout answer. Note- The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $100,000 to $120,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary 10 answer this question. 7. Refer to the original data. Using Goal Seek calculate the internal rate of return if the investment in working capital increases from $100,000 to $120,000. Note Be sure to return the fored out-of-pocket operating costs to the original value of $(198,000) Complete this question by entering your answers in the tabs below. Using Microsoft Excel Goal Seek; calculate the investment's internal rate of refurn. Complete this question by entering your answers in the tabs below. 4. What is the project's net present value when using a discount rate of 18% ? Complete this question by entering your answers in the tabs below. 5. If the company wants to achieve an 18% return on this investment, what is the maxamum amount that it can spend each year on foxed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The foxed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells 013 thvough G13. Complete this question by entering your answers in the fabs below. 7. Refer to the ongirnl dota. Using Goal Seek, calculate the internal rate of return if the investment in working capaal increases from $100,000 to $120,000. Note: Be sure to return the fixed out of pocket operabing costs to the orighal value of ($198,000) 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