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I need help with this problem. Project Option #2: Buy PolarBear Seltzer, Co. Expansion Project Title Project Description and Details Project Cost (Initial Investment) First

I need help with this problem.

Project Option #2: Buy PolarBear Seltzer, Co.
Expansion Project Title Project Description and Details Project Cost (Initial Investment) First Year Cash Flow Annual Growth Rate (5 years) Expenses as a percentage of Revenues Payback Period NPV IRR
Purchase of PolarBear Seltzer Company This company is based in Massachusetts and distributes their flavored seltzers nationally. While they have a large, loyal customer following, the company has exchanged hands multiple times. The current owners want out of the business, but it is uncertain as to why this is the case. The company is undervalued and the sale price reflects this. $15,000,000 $8,500,250 3.25% 54%
Calculation of Minimum Payback Period: Years
NPV of Projected Cash Flows
Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Year 5 Cash Flow
Projected Revenues at annual growth rate
Projected Expenses at 54% of Revenue
Annual Cash Flows
Discount rate for each year (6%)
Present value of cash flows
NPV of Projected Cash Flows
Internal Rate of Return (IRR):

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