this is my third time posting. please if you are just going to give an explanation and no answer then dont answer the question. please full in the yellow blanks, and please double check the ones that already filled in. thank you so much.
You are Executive Vice President of Operations of a company that produces and distributes household goods. Your company manufactures some of its products and purchases and reselts other products. Your compary has been distributing brushes purchased from a third-party and you are analyeing the economics of insourcing (manufacturing internally) the supply. These are the facts that you need to incorporate into a model: Your company has been spendine $200,000 annually to purchase brushes. This expense will cease if supply of brushes is insourced You estimate that manufacturing inhouse will cost $100,000 in labor and $10,000 in overhead. A significant imvestment in equigment will be required and the investment will be straight line depreciated aver a 5 year useful life (no residual value). Adelional work needs to be done to firm up an estimate but you believe the equipment will cost between 5200,000 and 5350,000 . The Treasurer of your company needs to decide how the imvestment would be financed and has asked you to analye the senaitivity of the return to financing cotions. At the end of the previous vear, 2022, vour company had $200,000 in Cash, reeo debt, and $100,000 in feuity on its balance Sheet. For the purpose of developing the model, you have selected some initial values for the two independent variables. You are responsible for develepine a model that analyes the potential investment, providing valuations of alternate strategies and a secsitivity analnis of the results. The following model should indude only the incremental impact on the income Statement, Balance Sheet and Cash flow statement. Fiese enter formula in the yeliow bones below to develop the model. The Excel Data Table functionality permits users to identify a set of potential value for two independent variables. The functionality automatically analyes a formula that is dependent on these two varlables and presents the results of all combinations of the two independent variaties. The 'EXCEL Financial Functiond' Sheet presents how to create a Data Table, but, the output is presented here for those that do not want to dive any deeper. Which would generate the higher NPV