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Suppose youre working as a financial analyst in a company. Your company is planning to expand its business and has planned to launch a new

Suppose youre working as a financial analyst in a company. Your company is planning to expand its business and has planned to launch a new product in the market which will be ready till next year. The owner of the company has approached you and have asked you to prepare feasibility report of a new product. You also think that the new product will help the company boost up its sales by at least 10% in the coming years. The owner has asked you to submit your final feasibility report till 20th January 2021

Required:

1. You start with analyzing the previous financial statements of the company. Looking at the sales figure for the last four years you analyze the growth at which the company sales are growing.

2. Following the sales growth rate in the last four years at least, calculate the projected sales of the next three years by adding up the percentage of the new product sales as per your expectations

3. Using the percentage growth in sales method, prepare the proforma income statement of the company for the next three years.

4. Calculate the operating cash flows of the company.

5. Suppose the initial investment requires for this project is about Rs. 200 million.Calculate the NPV, IRR and payback period considering the operating cash flows for the next three years. Rate of return is 20%.

6. Using the same approach also prepare the projected balance sheet of the company for the next three years.

7. Calculate the EFN amount for the three years and recommend to the owner that what is the extra amount that means to be injected to make the new project successful.

8. All the working should be done on the spreadsheet. Show proper workings of all the calculations you have done.

NOTE: IT'S Financial management subject. BOOK NAME ( Fundamental of cooperate finance) Jordan b writer name

please Answer this question in detail. Please give answer from yourself don't copy from internet. ASAP.

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