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Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. After an initial investment of 3139833; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to ts Part 1 complete Table A-2, and answer Part 1 according to it. What is the cash flow in the first year of the business? b What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Evtel made a profit equal to their expectations? a Part 2 Evaluate different scenarios. The questions are independent of each other. To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 1? (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits=0.) 1 b Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.) D H Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of years and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase Lycach year. What is the new NPV? [You can use tables C-1 and 2 for this question.) Since Al technologies are getting more advanced, smart home products are expected to attract more customers. So, at the beginning of your 3. Part 3 Milos belleves that they can grew by 30% once and stay the same after year 3 (Note that both revenues and expenses will increase) (The partis Independent of other parts, but the initial investment is stil 3139833 TL) Milos thinks the store was achieving great success, and he decided to sell the store at the end of year instead of year 6. What is the new selling price of the company to achieve 45IRR? (You can use tables D-1 and D2 for this question. This questions independent) After the brand of popular, they decided to open stores abroad to expand to the intamational market. An investor, wants a partnership with Milos in the NYC store. Ece is willing to cover of the initiativestment but demands of the yearly b income as well as she will get 20% of the selling price Report the new NPV. (The newer can be positive or negative. You can use tables -1 and 1-2 for this question. This question is independent) Tolga came up with a new idea for the RED Team, which changed their annual expenses starting from and including year 3. If the new Net Present Value in 340,000TL; report the percentage change in the Annual Expenses. (Report a positive value. (This question is independent) Eylul opens a savings account BABANKA with a monthly interest rate of 3%, solve the questions below accordingly. Assume that the savings rate Part 4 and landing rate are equal. Each question is independent Instructions Answers Part 4 Eyll opens a savings account in FIBABANKA with a monthly interest rate of 3%, solve the questions below accordingly. Assume that the savingsrate and lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can be buy the computer she wants that wil cost 15.000 TL in the future? (Do not round the number.) She starts saving 120 TL into her account each month. She plans to save for one and a half years and use the saved money to buy a new smartphone. If the smartphone costs 7800TL at the end of eighteen months how much more money does she need to pay on top of her saving to buy the smartphone? In the begining Eyll deposits 12.000 TL into her account and plans to deposit some amount to this account every month, so that she could buy her first car which will cost 155.000 TL at the end of 3 years. How much money does she need to depositeach month to buy her car after years? (Return a positive number) b Parts Al has a savings account with an annual interest rate of 25%. Ali want to let his savings and he is considering three different options. Assume that the savings rate and landing rate are equal. Each question is independent Areal estate agent offers Alla property and All think he can sell this property for 201509 TL after 10 years. What is the maximum price that All can buy this property rather than leaving his money it in the bank, so that he still earns at least as much as he would from the savings account? Selim offers Al to be his partner in Selim's restaurant. For 62137 TL Alican own half of the restaurant. The restaurant will grow 7% per year. After how many years can Ali sell his shares and eam the same amount of money he could eam from the bank account in 2 years? (Do not round the number Instructions Answers G Ali considers joining a private pension system. To join Ali needs to pay 22.000 inal and 7200TL every you. What should be the yearly rate of the private pension system, so that Al can double the money which he would have made from the bank account only by depositing 7200 TL every year in 10 years? Table A-1 Table A-2 Revenue Cost Teer 0 Cash Flow Initial vestment Cost of Capital Weekly Revenue Weekly Expenses 3139833 25% 14,850 3.900 1 2 4 Selling Price 5.000.000 There are 52 weeks in a year S NPV IRR Table B-2 Revenue Year Cost Cash Flow Table B-1 Initialwestment 3139833 Cost of Capital 25% Weekly Revenu 14,850 Ou Weekly Expenses 3.900 New Weekly Expenses Percantege Increase in Revenue Selling Price 6.000.000 There are 52 weeks in a year. 1 2 3 4 5 6 NPV IRR Table E-1 Table E-2 Revenue Year Cost Cash Flow Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 3139033 25 14,850 3.900 6,000,000 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 NPV RR Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. After an initial investment of 3139833; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to ts Part 1 complete Table A-2, and answer Part 1 according to it. What is the cash flow in the first year of the business? b What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Evtel made a profit equal to their expectations? a Part 2 Evaluate different scenarios. The questions are independent of each other. To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 1? (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits=0.) 1 b Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.) D H Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of years and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase Lycach year. What is the new NPV? [You can use tables C-1 and 2 for this question.) Since Al technologies are getting more advanced, smart home products are expected to attract more customers. So, at the beginning of your 3. Part 3 Milos belleves that they can grew by 30% once and stay the same after year 3 (Note that both revenues and expenses will increase) (The partis Independent of other parts, but the initial investment is stil 3139833 TL) Milos thinks the store was achieving great success, and he decided to sell the store at the end of year instead of year 6. What is the new selling price of the company to achieve 45IRR? (You can use tables D-1 and D2 for this question. This questions independent) After the brand of popular, they decided to open stores abroad to expand to the intamational market. An investor, wants a partnership with Milos in the NYC store. Ece is willing to cover of the initiativestment but demands of the yearly b income as well as she will get 20% of the selling price Report the new NPV. (The newer can be positive or negative. You can use tables -1 and 1-2 for this question. This question is independent) Tolga came up with a new idea for the RED Team, which changed their annual expenses starting from and including year 3. If the new Net Present Value in 340,000TL; report the percentage change in the Annual Expenses. (Report a positive value. (This question is independent) Eylul opens a savings account BABANKA with a monthly interest rate of 3%, solve the questions below accordingly. Assume that the savings rate Part 4 and landing rate are equal. Each question is independent Instructions Answers Part 4 Eyll opens a savings account in FIBABANKA with a monthly interest rate of 3%, solve the questions below accordingly. Assume that the savingsrate and lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can be buy the computer she wants that wil cost 15.000 TL in the future? (Do not round the number.) She starts saving 120 TL into her account each month. She plans to save for one and a half years and use the saved money to buy a new smartphone. If the smartphone costs 7800TL at the end of eighteen months how much more money does she need to pay on top of her saving to buy the smartphone? In the begining Eyll deposits 12.000 TL into her account and plans to deposit some amount to this account every month, so that she could buy her first car which will cost 155.000 TL at the end of 3 years. How much money does she need to depositeach month to buy her car after years? (Return a positive number) b Parts Al has a savings account with an annual interest rate of 25%. Ali want to let his savings and he is considering three different options. Assume that the savings rate and landing rate are equal. Each question is independent Areal estate agent offers Alla property and All think he can sell this property for 201509 TL after 10 years. What is the maximum price that All can buy this property rather than leaving his money it in the bank, so that he still earns at least as much as he would from the savings account? Selim offers Al to be his partner in Selim's restaurant. For 62137 TL Alican own half of the restaurant. The restaurant will grow 7% per year. After how many years can Ali sell his shares and eam the same amount of money he could eam from the bank account in 2 years? (Do not round the number Instructions Answers G Ali considers joining a private pension system. To join Ali needs to pay 22.000 inal and 7200TL every you. What should be the yearly rate of the private pension system, so that Al can double the money which he would have made from the bank account only by depositing 7200 TL every year in 10 years? Table A-1 Table A-2 Revenue Cost Teer 0 Cash Flow Initial vestment Cost of Capital Weekly Revenue Weekly Expenses 3139833 25% 14,850 3.900 1 2 4 Selling Price 5.000.000 There are 52 weeks in a year S NPV IRR Table B-2 Revenue Year Cost Cash Flow Table B-1 Initialwestment 3139833 Cost of Capital 25% Weekly Revenu 14,850 Ou Weekly Expenses 3.900 New Weekly Expenses Percantege Increase in Revenue Selling Price 6.000.000 There are 52 weeks in a year. 1 2 3 4 5 6 NPV IRR Table E-1 Table E-2 Revenue Year Cost Cash Flow Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 3139033 25 14,850 3.900 6,000,000 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 NPV RR

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