Learning Outcomes

$1)$ Apply the theories of marginal analysis for project evaluation

$2)$ Make realistic assumptions about future Income from Operations and cost in preparation for discounted cash flow analysis $($DCF$).$

$3)$ Perform DCF analysis by calculating the net present value based on future free cash flow estimates.

$4)$ Perform scenario analysis based on a varying one of the key assumptions.

$5)$ Use a Spreadsheet tool for DCF analysis

There are two parts to the assignment.

Part $1$: Using the Excel worksheet template provided calculate the NPV and the Contribution Margin using the data provided in the case.

Part $2$: A document for responding to the case questions based on the Excel calculations and the information in the case.