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Therefore, it is important to conduct sensitive analyses on some of the key parameters. Executive summary Prepare a short (less than 1 page) executive summary
Therefore, it is important to conduct sensitive analyses on some of the key parameters. Executive summary Prepare a short (less than 1 page) executive summary that lays out major assumptions you used and what decision you have arrived at. Please write this as if you were hired in Upland's finance department and you are writing the executive summary as part of your analysis to present to your bosses - the founders of Upland Restaurant. Also, turn in a neatly prepared excel file that details your NPV, IRR, and sensitivity analyses. Use the following questions as part of your executive summary preparation. NOTE: these questions are meant to give you ideas about what to write about in your executive summary - you do not need to necessarily answer each question. 1) Lease option a. What are the relevant costs and benefits of leasing the additional space to Diamond Events? b. Are any costs or benefits irrelevant? c. What is the NPV of leasing the additional space to Diamond Events? d. What is the IRR? e. Do the NPV and IRR decision making rules agree? f. Sensitivity analysis i. Construct a cost of capital sensitivity table for all valuation types with costs of capital ranging from ( 11 % ) to ( 15 % ) in increments of ( 0.5 % ). That is fill in the following chart: ii. Construct ( 3 imes 3 ) NPV and IRR Sensitivity Analyses reflecting the following information
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