it is as clear as I can make it. I will try again.

wprowworm , .. gla .digheter wertigem elemeye for dere! - Ite HPvt the la paris nehrt - Bass on input tom to martiary apanrare D parea ma reemma P PRI - Rana walaha irrum antarar? ? The NPyar me marana 1 DAM antara altes (Part aroma claiyaa tasirita ratna, apart aati p y . alaingapore - www Timinorartemmy apoor and rathering actress por iya por year any party nya 200 Avate and has a few mor. Founds to troll pion) ) in many pt is viamam mi he NTV is par, I I w 20. Tapasta papattinam amala ur aanae nate Yee 1ST run trportinia Wate - -14 S. 01- -45 Popmeman | ta Free Cash a STEP ER D Bauer Industries han tomobile manufacturer Management is currently evaluating a proposal to build a part time de Bover plane to use a cost of capital of 11.7% to evaluate this project Bmed on extensive research has prepared the incremental free cash flow projections shown below in one of dollars. 2. For the base-case scenario what is the NPV of the plant to manufacture lightweight trucks? 6. Bened on input from the marketing department, Beer as uncertain about its rever forecast in particularmente che entry to the revenue assumptions What is the NPV of we 124 Tigher than forecast? What is the NPV revenues are 12% lower than toca? c. Rather than assuming that cash flows for this project are constant management would like to explore the sensitivity syste pouble pooth in revenues and operating expenses Specifically management would The NPV change if the revenue and operating expenses grow by per year rather than by 27 . Tocmine tre sensitivity of this project to the discount rate, management would be computere Pvtor Gerart deco Cater, win the discount rate on the sand the NPV on the ads for discount roles ranging from 5 to 30%. For what range of discount rates does the project have a positive NPVP 2. For this base-case scenario what is the NPV of the plant to manufacture lightweight? neve muntora. What is the NPV of The NPV of the plant to mandacture lightweight trucks, based on the estimated tree cash flow 5 million (Robes decimal places b. Based on input from the marketing department. But an uncertain about its revenue forecast. In particular management de te e he sentory ** 12% higher than forecast? What is the NPV revenues are 125 tower than for? The NPVof this project devenue 12% higher than forecastimilion Round to two decimal places) The NPV of this project it revenues are 12% lower than forecast in million Round to two decima plom) t. Rather than assuming that cash flow for the project are constant, management would like to explore the entity of anys es posible growth in and operating expenses. Specifically management would ke to assume that events, manufacturing expenses and marketing expenses wegen in the table for year and go by pery very year starting in year 2. Management also plans to assume that the in capital expenditures (and therefore depreciation additions to working capital and continuation value remain asialecie in What is the NPV of this project under these state assumptions? How does the NPV charge of the revenues and operating expenses grow by 6% per year rather than by 25? # revenues, manufacturing expenses and marketing expenses grow by 2% per year every year starting in year 2. SNP of De estimated to choisition Round to two decimal places. revenus, manufacturing expertes, and marketing expenses grow by 6% per year every year starting in year 2. NPV of the estimated tech for a million found to two decimal places d. To examine the sensitivity of this project to the discount rate, management would the to computer De NPV for diferent discount estes using the bonecase scenario Create a graph, with the decount rate on the from 5% to 30%. For what ranges of discount rates does the project have a positive PV The NPV is positive for discount rates below the IRR of Round to one decimal place Data Table Click on the following icon order to copy its contents espreek) Year 1 1000 - 372 10 100 -32 -101 -154 379 Revenue Manufacturing Expenses other than depreciation Marketing Expert Depreciation EBIT Test 21% Unlevered Net Income Depreciation Addition to Net Working Capital Capital Expenditure Continuation Value Free Cash Flow - 15.4 375 -0 299 -154 - 15.4 -3 - 113 $23 P Done .. For this base-case scenario what is the NPV of the plant to manufacture lightweight trucks? Bauer Industries is automobile manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 11.7% to evaluate this project Based on extensive research has prepared the incremental tree cash flow projections shown below (in Millions of dollars b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumption. What is the NPV of this project revenues are 12% higher than forecast? What is the NPV f revenues are 12% lower than forecast? c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of te analysis to possible growth in revenue and operating expenses. Specifically, management would like to assume that revenues, manufacturing expenses and marketing expenses are as given in the table for year 1 and grow by 2% per year every year starting in year 2 Management also plans to assume that the initial capital expenditures (and therefore depreciation) additions to working capital, and continuation value remain as initially specified in the table. What is the NPV of this project under these alternative assumptions? How does the NPV change the revenues and operating expenses grow by 6% per year rather than by 27 discount rates ranging . To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for different discount rates. Create a graph with the discount rate on the rats and the NPV on the axis, for from 5% to 30%. For what range of discount rates does the project have a positive NPV? .. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? The NPV of the plant to manufacture lightweight trucks, based on the estimated to cash flow is $million (Round to two decimal places . Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the emotivity of the NPV to the revenue assumptions. What is the NPV of this project revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? The NPVof this project if revenues are 12% higher than forecast is $milion (Round to two decimal places The NPV of this project if revenues are 12% lower than forecast is $ milion (Round to two decimal places) c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would capital expenditures (and therefore depreciation), addition to working capital and continuation value remain as initially specified in the table. What is the NPV of this project under these alterative assumptions? How does the NPV change if the revenues and operating expenses grow by 6% per year rather than by 2%? it revenues, manufacturing expenses, and marketing expenses grow by 2* per year every year starting in year 2. the NPV of the estimated free cash flow is million (Round to two decimal places.) If revenues, manufacturing experies, and marketing expenses grow by 6% per your every year starting in your 2 the NPV of the estimated tree cash flow in 5 million (Round to two decirtual places) d. To examine the sensitivity of this project to the discount rate management would like to compute the NPV for diterent discount rates using the base-case scenario Create a graph with the discount rate on the name and the NPV on the us for discount rates ranging from 5% to 30% For what ranges of discount rates does the project have a positive NPV? The NPV is positive for discount rates below the IRR of X (Round to one decimal place.) Data Table (Click on the following coin order to copy to contents into a spreadsheet 1-9 1000 -372 Year Revenues Manufacturing Experies (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 21% - 10.1 10 100.6 -372 - 10.1 -154 37.9 -80 299 - 15.4 379 -80 299 - 15.4 -4.3 Unlevered Net Income - 15.4 Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow - 1539 113 523 - 1539 410 wprowworm , .. gla .digheter wertigem elemeye for dere! - Ite HPvt the la paris nehrt - Bass on input tom to martiary apanrare D parea ma reemma P PRI - Rana walaha irrum antarar? ? The NPyar me marana 1 DAM antara altes (Part aroma claiyaa tasirita ratna, apart aati p y . alaingapore - www Timinorartemmy apoor and rathering actress por iya por year any party nya 200 Avate and has a few mor. Founds to troll pion) ) in many pt is viamam mi he NTV is par, I I w 20. Tapasta papattinam amala ur aanae nate Yee 1ST run trportinia Wate - -14 S. 01- -45 Popmeman | ta Free Cash a STEP ER D Bauer Industries han tomobile manufacturer Management is currently evaluating a proposal to build a part time de Bover plane to use a cost of capital of 11.7% to evaluate this project Bmed on extensive research has prepared the incremental free cash flow projections shown below in one of dollars. 2. For the base-case scenario what is the NPV of the plant to manufacture lightweight trucks? 6. Bened on input from the marketing department, Beer as uncertain about its rever forecast in particularmente che entry to the revenue assumptions What is the NPV of we 124 Tigher than forecast? What is the NPV revenues are 12% lower than toca? c. Rather than assuming that cash flows for this project are constant management would like to explore the sensitivity syste pouble pooth in revenues and operating expenses Specifically management would The NPV change if the revenue and operating expenses grow by per year rather than by 27 . Tocmine tre sensitivity of this project to the discount rate, management would be computere Pvtor Gerart deco Cater, win the discount rate on the sand the NPV on the ads for discount roles ranging from 5 to 30%. For what range of discount rates does the project have a positive NPVP 2. For this base-case scenario what is the NPV of the plant to manufacture lightweight? neve muntora. What is the NPV of The NPV of the plant to mandacture lightweight trucks, based on the estimated tree cash flow 5 million (Robes decimal places b. Based on input from the marketing department. But an uncertain about its revenue forecast. In particular management de te e he sentory ** 12% higher than forecast? What is the NPV revenues are 125 tower than for? The NPVof this project devenue 12% higher than forecastimilion Round to two decimal places) The NPV of this project it revenues are 12% lower than forecast in million Round to two decima plom) t. Rather than assuming that cash flow for the project are constant, management would like to explore the entity of anys es posible growth in and operating expenses. Specifically management would ke to assume that events, manufacturing expenses and marketing expenses wegen in the table for year and go by pery very year starting in year 2. Management also plans to assume that the in capital expenditures (and therefore depreciation additions to working capital and continuation value remain asialecie in What is the NPV of this project under these state assumptions? How does the NPV charge of the revenues and operating expenses grow by 6% per year rather than by 25? # revenues, manufacturing expenses and marketing expenses grow by 2% per year every year starting in year 2. SNP of De estimated to choisition Round to two decimal places. revenus, manufacturing expertes, and marketing expenses grow by 6% per year every year starting in year 2. NPV of the estimated tech for a million found to two decimal places d. To examine the sensitivity of this project to the discount rate, management would the to computer De NPV for diferent discount estes using the bonecase scenario Create a graph, with the decount rate on the from 5% to 30%. For what ranges of discount rates does the project have a positive PV The NPV is positive for discount rates below the IRR of Round to one decimal place Data Table Click on the following icon order to copy its contents espreek) Year 1 1000 - 372 10 100 -32 -101 -154 379 Revenue Manufacturing Expenses other than depreciation Marketing Expert Depreciation EBIT Test 21% Unlevered Net Income Depreciation Addition to Net Working Capital Capital Expenditure Continuation Value Free Cash Flow - 15.4 375 -0 299 -154 - 15.4 -3 - 113 $23 P Done .. For this base-case scenario what is the NPV of the plant to manufacture lightweight trucks? Bauer Industries is automobile manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 11.7% to evaluate this project Based on extensive research has prepared the incremental tree cash flow projections shown below (in Millions of dollars b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumption. What is the NPV of this project revenues are 12% higher than forecast? What is the NPV f revenues are 12% lower than forecast? c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of te analysis to possible growth in revenue and operating expenses. Specifically, management would like to assume that revenues, manufacturing expenses and marketing expenses are as given in the table for year 1 and grow by 2% per year every year starting in year 2 Management also plans to assume that the initial capital expenditures (and therefore depreciation) additions to working capital, and continuation value remain as initially specified in the table. What is the NPV of this project under these alternative assumptions? How does the NPV change the revenues and operating expenses grow by 6% per year rather than by 27 discount rates ranging . To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for different discount rates. Create a graph with the discount rate on the rats and the NPV on the axis, for from 5% to 30%. For what range of discount rates does the project have a positive NPV? .. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? The NPV of the plant to manufacture lightweight trucks, based on the estimated to cash flow is $million (Round to two decimal places . Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the emotivity of the NPV to the revenue assumptions. What is the NPV of this project revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? The NPVof this project if revenues are 12% higher than forecast is $milion (Round to two decimal places The NPV of this project if revenues are 12% lower than forecast is $ milion (Round to two decimal places) c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would capital expenditures (and therefore depreciation), addition to working capital and continuation value remain as initially specified in the table. What is the NPV of this project under these alterative assumptions? How does the NPV change if the revenues and operating expenses grow by 6% per year rather than by 2%? it revenues, manufacturing expenses, and marketing expenses grow by 2* per year every year starting in year 2. the NPV of the estimated free cash flow is million (Round to two decimal places.) If revenues, manufacturing experies, and marketing expenses grow by 6% per your every year starting in your 2 the NPV of the estimated tree cash flow in 5 million (Round to two decirtual places) d. To examine the sensitivity of this project to the discount rate management would like to compute the NPV for diterent discount rates using the base-case scenario Create a graph with the discount rate on the name and the NPV on the us for discount rates ranging from 5% to 30% For what ranges of discount rates does the project have a positive NPV? The NPV is positive for discount rates below the IRR of X (Round to one decimal place.) Data Table (Click on the following coin order to copy to contents into a spreadsheet 1-9 1000 -372 Year Revenues Manufacturing Experies (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 21% - 10.1 10 100.6 -372 - 10.1 -154 37.9 -80 299 - 15.4 379 -80 299 - 15.4 -4.3 Unlevered Net Income - 15.4 Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow - 1539 113 523 - 1539 410