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I.'.,,1|UI::IDIII'...'IN~E::I' 1. Estimate the Operational Cash Flows for the brewpub project. Use the best case and worse case scenarios. To do this, you will need

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I.'.,,1|UI::IDIII'...'IN~E::I' 1. Estimate the Operational Cash Flows for the brewpub project. Use the "best case and \"worse" case scenarios." To do this, you will need to calculate the annual revenues and annual expenses for the 10-year project, any changes in net working capital, and any changes to capital expenditures. Describe all assumptions and calculations you used to arrive at the final free cash flows. 2. Calculate the NPV and IRR of the project given the information presentedusing the \"best case scenario." Should Samantha and Grant go ahead with the brewpub investment? Why or why not? 3. What would be the impact on NPV and IRR if the "worst case scenario\"occurs? Would this alter Grant and Samantha's decision whether to investin the brewpub? Describe how you found this result (also show inthe spreadsheet). 4. Suppose they are operating under the best case scenario and they decide that in year 5 they would like to do major renovations to the restaurant (a capital expense}. They figure this will cost an additional $1,000,000 in year 5. Along with the renovations, they figure they could increase the price of the beer to $7 per pint and keep it at that price for the duration of the project. How do these changes impact NPV and IRR? Is it worth it for the pair to go forward with the renovations? Describe how you found this result (also show in the spreadsheet}. 5. Would there be a significant impact to Samantha and Grant's brewpub decision if there were a change in the cost of capital? Describe how you found this result (also show in the spreadsheet)

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