I need help as I am struggling with this project and cannot get help due to the current health issues. Thank you for your assistance. Instructions Students must submit a document (MS Word file) that provides a narrative analysis of the results of their ratio calculations in their own words, not copied from annual reports. Narratives should include answers to the questions: 1. a comparison of the results of the two fiscal years for the ratios chosen (i.e., increase, decrease, ideas as to why this might have occurred) 2. a comparison to the industry average for the ratios chosen (i.e., how the company compares to the industry and what this means for the company) 3. What risk is the company facing? Is this true for the entire industry? How can the company mitigate this risk? What is the industry Beta and the company's Beta? 4. Recommendations for individuals who may be considering investing in the chosen company 5. Given the model of valuation is the company priced fairly? What recommendations would you make to increase the value of the company (be thorough make specific recommendations tied back to the company's stated financial goals). 6. Project evaluations: o Using the required rate of return calculated in part 3, evaluate the 4 projects given. To evaluate, set up the cash flow estimation in the excel spreadsheet posted, similar to table 10.4. Your company has raised $5,000,000 to invest in an expansion project(s). All 4 projects will have to begin at the same time, so evaluate the costs of the projects to check for mutually exclusiveness of the projects. Depending on the costs and returns, it is possible to invest in multiple projects. Each project will have its pros and cons, and each project to choose from will have percentages of costs and returns for Expected and Bad Economies. You will need the cash flows for each economy and do a weighted average like in Table 10.5. Set up excel using formulas. o Project Excel Sheet

Project 1: This project is over the course of 4 years. You will need an investment of $5 million in year 0, $2.5 million for equipment, and $2.5 million to produce inventory for year 1. Depreciation is straight line over the 4 years, and the new equipment purchased is sold at the end of the project for a salvage value of $250,000. Fixed costs are $500,000 per year and the variable costs are 25% of sales revenues. Total inventory produced will be 85,000 units. Sales for year 1 are 15,000, year 2 are estimated to be 20,000 units at $200 each and Year 3 and 4 at 25,000 units at $125 each. The estimated tax rate is 35%. There is a 30% chance that the Economy worsens by Year 2. If so, sales are estimated to decrease 25% less than the previous year each year with no change in price after year 2 and inventory

Good Economy Years Bad Economy Years Investment outlays at Time Initial Investment Cost of inventory manufacturing for year 1 sales Price of liquidated inventory Liquidated Operating Cash Flows Unit Sales Sales price Sales revenues Variable Costs Fixed operating costs Depreciation Total operating costs EBIT Taxes on EBIT Gross Income Add back depreciation Net Income Salvage Value Taxes on salvage value of equipment Cash flow from sale of equipment Project free cash flows Depreciation Cost Year 12 Rate Depreciation per year Predicted Cash Flow Odds 0 Cash Flow Scenario Good Economy Bad Economy Weighted average cash flow Project Evaluation Good Economy IRR Bad Economy IRR WACC NPV Blended IRR MIRR Payback Good Economy Years Bad Economy Years Investment outlays at Time Initial Investment Cost of inventory manufacturing for year 1 sales Price of liquidated inventory Liquidated Operating Cash Flows Unit Sales Sales price Sales revenues Variable Costs Fixed operating costs Depreciation Total operating costs EBIT Taxes on EBIT Gross Income Add back depreciation Net Income Salvage Value Taxes on salvage value of equipment Cash flow from sale of equipment Project free cash flows Depreciation Cost Year 12 Rate Depreciation per year Predicted Cash Flow Odds 0 Cash Flow Scenario Good Economy Bad Economy Weighted average cash flow Project Evaluation Good Economy IRR Bad Economy IRR WACC NPV Blended IRR MIRR Payback