SPREADSHEET 10.1 Financial projections for Blooper's Magnoosium mine (dollar values in millions)
A. Inputs
Initial investment	150
Salvage value	20
Initial revenues	150
Variable costs (% of revenues)	40.0%
Initial fixed costs	40
Inflation rate (%)	5.0%
Discount rate (%)	12.0%
Receivables (% of sales)	16.7%
Inventory (% of next year's costs)	15.0%
Tax rate (%)	21.0%
Year:	0	1	2	3	4	5	6
B. Capital Investments
Investments in fixed assets	150.00
Sales of fixed assets							15.80
Cash flow investment in fixed assets	-150.00						15.80
C. Operating cash flow
Revenues		150.00	157.50	165.38	173.64	182.33
Variable expenses		60.00	63.00	66.15	69.46	72.93
Fixed expenses		40.00	42.00	44.10	46.31	48.62
Depreciation		30.00	30.00	30.00	30.00	30.00
Pretax profit		20.00	22.50	25.13	27.88	30.78
Tax		4.20	4.73	5.28	5.86	6.46
Profit after tax		15.80	17.78	19.85	22.03	24.31
Operating cash flow		45.80	47.78	49.85	52.03	54.31
D. Working capital
Working capital	15.00	40.75	42.79	44.93	47.17	30.39	0.00
Change in working capital	15.00	25.75	2.04	2.14	2.25	-16.79	-30.39
Cash flow from investment in working capital	-15.00	-25.75	-2.04	-2.14	-2.25	16.79	30.39
		0.408	0.408	0.408	0.408	0.250
E. Project valuation
Total project cash flow	-165.00	20.05	45.74	47.71	49.78	71.10	46.19
Discount factor	1.00	0.8929	0.7972	0.7118	0.6355	0.5674	0.5066
PV of cash flow	-165.00	17.90	36.46	33.96	31.64	40.34	23.40
Net present value	18.70

Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places