Monza's sales 10,000 Monza's price $65,000 Monza Cost structure per car Body materials $11,000 Engine Drivetrain $4,000 $6,000 Given MACRS Schedule year 1 33% year 2 45% year 3 15% year 4 7% Battery Pack $20,000 Electronics $5,000 Labor (allocated) $4,000 Overhead (allocated) $2,000 Consulting Food $50,000 Spenes Price $80,000 Spenza Sales projections (number of cars) Year 1 Year 2 Year 3 Year 4 Year 5 Base Case Scenario Optimistic Scenario Pessimistic Scenario 5,000 7,000 6,000 4,000 3,000 5,500 7,500 6,500 4,500 3,500 4,500 6,500 5,500 3,500 2,500 Plant Investment $250 Mil Alternative Land Use $15 Mil Plant Capacity 10,000 cars Project life 4 years Percentage of Debt Financing 50% Interest Rate 7% Tax rate 21% NWC % of direct manufacturing < Monza Sales Cannibalization Historical Electricity Cost Carbon Body Cost per Car Darcants of alectricity. 4.75% 1,000 cars ######## 70% of national average $14,000 80% Solution Legend Value given in problem Formula/Calculation/Analysis required Assumptions, Qualitative analysis or Short answer required Goal Seek, Scenario or Data Table cell Crystal Ball Input Crystal Ball Output EMP_IS_ADM EMP_IS_PROF ADMINISTRATOR PK,FK1 P_ID PROFESSOR PK,FK1 PID ADM_TITLE PROF_RANK GRADUATE PK,FK1 P_ID GRAD_THESIS STU_TYPE UNDERGRAD PK,FK1 P ID UND HOURS Q3 - Answer Yes or No Does every Person have to be a Student or an Employee? Answer: Can a Student also be an Employee? Answer: Does every Employee have an office? Answer: