These are previous questions I have answered need for the problem at the bottom

Consider the following capital budgeting and cash flow estimation problem. You have developed a new energy drink that uses various vegetables. The drink is called V-DRINK. You have an existing building that you are using to produce V-DRINK. The building is fully depreciated. You determine a need to buy $400,000 in equipment. Shipping and installation is an additional $50,000. Additionally you determine you will need to have $14,257 in inventory. What is the total initial outlay associated with the project?

$ 464,257.00

The equipment cost (equipment plus shipping and installation) can be depreciated at the rate of 21% the first year. The remaining 5 years (years 2-6) the depreciation will be equal to $30,000 per year. What is the amount of depreciation in year 1?

$94,500

Based on some market research you expect to sell around 200,000 bottles of V-Drink a year at wholesale price of $2.7. Operating costs (excluding depreciation) are expected to be 50% of revenue. The firms tax rate is 40%. What is the annual operating cash flow associated with this project in year 2. (Note you will need to factor in $30,000 in depreciation in year 2 from the prior question).

$ 174,000.00

Question I need help with

In EXCEL using the information from the previous questions that discussed the V-DRINK

a) Compute the NPV, IRR, and payback. Also complete a NPV profile associated with this project.

b) Copy and paste your cash flow analysis and results into a tab. Name that tab INFLATION. Adjust the cash flows assuming that inflation will impact all variable cash flows at the rate of 2% per year.

c) Copy and paste your analysis into another tab and name the tab Scenario. Adjust the units sold assuming that you only expect to sell half as many as originally forecasted. If the probability of the original sales is 50% and the probability of the depressed sales forecast is 50% what is your expected NPV?

Attach your spreadsheet to this post. Attach your spread sheet and submit as your Post 3 to the discussion board as well.

BELOW IS INFORMATION FROM THE PRIOR ASSESSMENT FOR EASY REFERENCE. YOU STILL WILL NEED TO REVIEW THE PRIOR ASSESSMENT FOR YOUR ANSWERS AND/OR ANY MISSING INFORMATION.

Questions from prior assessment. please go back and review your particular assessment for any missing information and/or your answers to the questions. Note these questions have x for some values. This is a random variable and you will need to review your prior assessment to find out this information.

The risk of your project is similar to other drinks you have developed and based on that risk you require a rate of return of 0.13, expressed as a decimal. Enter your required rate of return or WACC as a decimal.

Question 1

Consider the following capital budgeting and cash flow estimation problem. You have developed a new energy drink that uses various vegetables. The drink is called V-DRINK. You have an existing building that you are using to produce V-DRINK. The building is fully depreciated. You determine a need to buy $400,000 in equipment. Shipping and installation is an additional $50,000. Additionally you determine you will need to have $[x] in inventory. What is the total initial outlay associated with the project?

Question 2

The equipment cost (equipment plus shipping and installation) can be depreciated at the rate of [x]% the first year. The remaining 5 years (years 2-6) the depreciation will be equal to $30,000 per year. What is the amount of depreciation in year 1?

Question 3

Based on some market research you expect to sell around 200,000 bottles of V-Drink a year at wholesale price of $[x]. Operating costs (excluding depreciation) are expected to be 50% of revenue. The firms tax rate is 40%. What is the annual operating cash flow associated with this project in year 2. (Note you will need to factor in $30,000 in depreciation in year 2 from the prior question).