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please fill in all parts lf the excel sheet based off the provide notes Using the following assumptions, Caleulpte the NPV and ARR for a

please fill in all parts lf the excel sheet based off the provide notes image text in transcribed
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Using the following assumptions, Caleulpte the NPV and ARR for a Base Case, a Downside Case, and an Upside Case Note that the worksheet has spaces for each casb, set up (hopetully) in print friendly format Assumptions: Kinston Packaphy in contideng expanding ts capacty by putchasing a new machine, the XC.450. The cost is $275 milion. Unforturately, instaling this mechine wal take several months and wil partialy disupt current production. The firm has just completed a $50,000 foasbety study to analyee the decision to buy the XC.750, resulting in the folowing estimates: Moneting: Once the XC-750 in opecational noxt year, the extra capacily is expected to generate 510 mition per year in additonal sales which we continue for the tonyoar Ife of the machine. Opecations: The distuption caused by the instalabion will decrease sales by 55 millien this year. As with Kinston's exasting products, the cost of goods for the producted producod by the XC-750 is expected to be 64\%, of their sale price. The increased production we alas requive increased inventogy on hand of $1 milion durng the lfe of the project, including year 0. Hymbn Repouces: The expansion well woquir addtional sales and adminstrative parsonnel at a cost of $2 milion per yoar. Accounting: The 0.750 wi be depociated va the straight ine method aver the tenyear tfe of the machine. Ponsiatent weh clactent experience, the frm expects recelvables to be 15% of revenue and payables to be 10 of cost of goods aold in AMY incermental bushess associated with this project (posithe or negalive) Toga instictions: hile the base case astumptione seem reasonable, she believes that actual sales could range from $8milion io $12 milion. herefore she has asked that you detemine both the NPV and IRR for not only the base case, but also for a downelde and upside

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