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Need excel sheet for these two questions. Need soon! REAL OPTION ANALYSIS: Your company is deciding whether to invest in a new machine. The new

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Need excel sheet for these two questions. Need soon!

image text in transcribed REAL OPTION ANALYSIS: Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $322000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1,760,000. The cost of the machine will decline by $110,000 per year until it reaches $1,320,000, where it will remain. The required return is 15 %. What is the NPV if the company purchases the machine today? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) What is the NPV if the company decides to wait 1 year to purchases the machine? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) What is the NPV if the company decides to wait 2 years to purchases the machine? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) What is the NPV if the company decides to wait 3 years to purchases the machine? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) What is the NPV if the company decides to wait 4 years to purchases the machine? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) What is the NPV if the company decides to wait 5 years to purchases the machine? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) NPV if Purchased Today -143956.50 NPV if Purchased in 1 Year NPV if Purchased in 2 Years NPV if Purchased in 3 Years NPV if Purchased in 4 Years NPV if Purchased in 5 Years BREAK-EVEN & SENSITIVITY ANALYSIS: We are evaluating a project that costs $842000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 66000 units per year. Price per unit is $43, variable cost per unit is $20, and fixed costs are $430000 per year. The tax rate is 35%, and we require a return of 20% on this project. What is the NPV of this base-case? (Round answers to 2 decimal places, round intermediate calculations to 5 decimal places) Calculate the Accounting Break-Even Point. (Round answers to 0 decimal places, round intermediate calculations to 5 decimal places) Calculate the Financial Break-Even Point. (Round answers to 0 decimal places, round intermediate calculations to 5 decimal places) In dollar terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) In percentage terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 4 decimal places, round intermediate calculations to 5 decimal places) In dollar terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places) In percentage terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 4 decimal places, round intermediate calculations to 5 decimal places) Base Case NPV 2012990.79 Accounting Break-Even 23272 Financial Break-Even Dollar Sensitivity of NPV Percent Sensitivity of NPV Dollar Sensitivity of OCF Percent Sensitivity of OCF

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