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provide detailed NPV Analysis calculations in excel data sheet. Appendix One (Construct or lease) Objective: Should FFT lease or construct their own production facility Option

provide detailed NPV Analysis calculations in excel data sheet.

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Appendix One (Construct or lease) Objective: Should FFT lease or construct their own production facility Option 1: Construct Costs to incur: Buying land, construct building and getting ready $ 900,000 for use $ 20,000 15 $ 1,500,000 $ 500,000 $ 175,000 Taxes, insurance, and repairs (per year) Intended years of use Projected market value in 15 years Maximum down payment FFT can make Remainder in four payments of; Option 2: Lease Intended years of use First lease payment due now Rest of the lease payments (years 2-15) Operating costs to be paid by FFT Property taxes (annual) Insurance (annual) Initial one-time deposit, will be returned in year 18 Required rate of return 15 $ 80,000 $ 120,000 $ 15,000 $ 25,000 $ 50,000 14% Methodology: The consulting team is proposing to perform a NPV analysis and determine the benefit to leasing or construction, Based on the analysis, they will recommend the preferred option (construction or leasing). ale BIU-- A a. 2 Mergea Canter $ 282 Conditional Formats Cell Formatting Table Styles Insert Delete Format powl 27 Sort & Find & Fit-Select- ra- Clear But 22 Cells A Data set Calculations 13 115 16 10 19 20 21 22

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