Project Revised Spring 20 Finance363 We have a new company named Stella Brewing Corp. The company istraded on the NYSEusing the symbol SBC. Market Priceon April 3, 2020 was $52.00 per share. Volume traded that day was 4 million shares and the companies NAICSis 54321-Beer Brewing. The company is developing a new product- PaleAle Seltzer that they plan to launch Jan. 1, 2021 if the "numbers are there" Your assignment isto decide if the company should launch or not!! Financial information includes: Required Rate of Return (Hurdle Rate) is 15% Investment to launch, including Net Working Capital, is $24 Million USDollars. Seeattached ExcelWorksheet for further information

Revised Project Year 2020 2021 2022 2023 2024 2025

Investment $24,000,000

Free Cash Flows $12,000,000 $12,000,000 $12,000,000 $12,000,000 $12,000,000 Additional Information

Units Sold 20,000,000 25,000,000 40,000,000 20,000,000 10,000,000

Average Price per Unit $10.00 $12.00 $12.00 $10.00 $8.00

Revenue $200,000,000 $300,000,000 $480,000,000 $200,000,000 $80,000,000

Your Assignment a)Unit, Average Price, and Revenue Bar Graphs-Info for slides b)Investment Decision Graph-Note the Required Rate of Return is l5%--be sure to include the Present Value of Future Cash Flows, IRR,NPV, Profitability Index, and Payback