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Required information Eisner Company has an opportunity to manulacture and sell a new product for a five-year petiod The company estimated the following costs and

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Required information Eisner Company has an opportunity to manulacture and sell a new product for a five-year petiod The company estimated the following costs and revenues for the new product: Annual revences and cosis: When the project concludes in five years the workang capital will be released for imestment elsewhere in the company Click hete to doownload the Excel template which you will use to answer the-questions that followe Clickthere for a beietiutonialongondSeokin Excel. 3. In the Excel template, using Goal Seek, calculate this investment's intemaf rate of return. If the compony's hurdle rate is 18 hi would it be likely to accept or reject the investment? Wily? 4. What is the projects riet present value when using a discoumt rate of 18% ? 5. If the company wants to ochiove an 18% return on this inwestment, what is the maximum amount that it can spety each year on fixed out of pocket operating costs? Use Goal Seek to compute your answec Note. The fined our or.pocket operating costs remain constant for all five yoars, theretore modifying con Ct3 automaticaly updates colls D13 through 613. 6. If the investment in working capital increased from $95,000 to $115,000 would you expect the internal rate of return to increase. deciease, or stay the same? No computations are necessary to answer this question. 7. Aefer to the onginal data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $95,000 to $115,000. Note Be sure to return the fored out-orpocket operating costs to the original value of \$199,000) 17 Net present value (51M B16;G16)

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