unfortunately; we don't have the table in english
SLN is a subcontractor for automobile constructions. The manager assesses a new plant for the production of engine blocks for commercial vehicles. The cost of capital of this project is 12%. Cash flows (operating cash flow: FME) available in advance are in thousands of dollars): a) According to this scenario, what is the NPV of this project? (10 POINTS) b) The CEO is not sure of his turnover expectations. He therefore wishes to study the sensitivity of NPV to turnover assumptions. What is the NPV of project if turnover is 10% lower or higher than expected? (20 POINTS) c) Rather than assuming that the operating cash flows from this project are constant, the CEO would like to analyze the sensitivity of the NPV to growth in turnover and costs . project if turnover is 10% lower or higher than expected? (20 POINTS) c) Rather than assuming that the operating cash flows from this project are constant, the CEO would like to analyze the sensitivity of the NPV to growth in turnover and costs of production. More specifically, he wishes to study the hypothesis of an increase of 2% per year of turnover, consumption of raw materials and staff from year 2. What is the new NPV for the project? And if the increase is 5% per year? (30 POINTS) d) To analyze the sensitivity of this project to the discount rate, the CEO wishes to calculate the NPV for different capital costs. Make a graph representing the NPV in function the discount rate (between 5% and 30%). For which rate range the VAVN update positive? 2%. Les flux de trsorerie (flux montaires d'exploitation: FME) disponibles anticips sont (en milliers de dollars) : 1 7 2 100 3 100 4 100 5 100 6 100 8 100 9 100 10 100 100 100 35 Chiffre d'affaires Consommation de matires premires - Charges de personnel Amortissements Rsultat d'exploitation - Impt sur les socits (33%) Rsultat net endettement nul + Amortissements - Variation du BFR - Investissements + Valeur terminale = Flux de trsorerie disponibles 35 10 10 15 15 40 40 13 13 27 27 15 15 -5-5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 - 5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 -150 12 49 37 - 150 37 37 37 37 37 37 37 37 0 1 L G 4 5 68 10 Joo ISD 150 Is 10D OS 36 35 35 35 35 bs 35 35BS JO 10 ID ID 10 10 ID 10 10 GY6 16 er 15 IS 15 15 15 15 40 40 40 40 40 40 40 40 40 40 13 13 12 1e 12 12 12 12 12 Revenu Cmoeimplio e Tant material Stappe cost Amstb zatis Operating Result (EBUT) Taxes 67) Sodety (33%) 13 Net Beaud Amor bizan walking capital Requirement Investments -150 Terminal value Available cash flow - 150 27 23 27 23 27 27 2 27 27 + 5 15 16 5 15 15 15 15 15 15 .3 -S -5 -5 -5 -5 + 87 37 37 37 37 87 SLN is a subcontractor for automobile constructions. The manager assesses a new plant for the production of engine blocks for commercial vehicles. The cost of capital of this project is 12%. Cash flows (operating cash flow: FME) available in advance are in thousands of dollars): a) According to this scenario, what is the NPV of this project? (10 POINTS) b) The CEO is not sure of his turnover expectations. He therefore wishes to study the sensitivity of NPV to turnover assumptions. What is the NPV of project if turnover is 10% lower or higher than expected? (20 POINTS) c) Rather than assuming that the operating cash flows from this project are constant, the CEO would like to analyze the sensitivity of the NPV to growth in turnover and costs . project if turnover is 10% lower or higher than expected? (20 POINTS) c) Rather than assuming that the operating cash flows from this project are constant, the CEO would like to analyze the sensitivity of the NPV to growth in turnover and costs of production. More specifically, he wishes to study the hypothesis of an increase of 2% per year of turnover, consumption of raw materials and staff from year 2. What is the new NPV for the project? And if the increase is 5% per year? (30 POINTS) d) To analyze the sensitivity of this project to the discount rate, the CEO wishes to calculate the NPV for different capital costs. Make a graph representing the NPV in function the discount rate (between 5% and 30%). For which rate range the VAVN update positive? 2%. Les flux de trsorerie (flux montaires d'exploitation: FME) disponibles anticips sont (en milliers de dollars) : 1 7 2 100 3 100 4 100 5 100 6 100 8 100 9 100 10 100 100 100 35 Chiffre d'affaires Consommation de matires premires - Charges de personnel Amortissements Rsultat d'exploitation - Impt sur les socits (33%) Rsultat net endettement nul + Amortissements - Variation du BFR - Investissements + Valeur terminale = Flux de trsorerie disponibles 35 10 10 15 15 40 40 13 13 27 27 15 15 -5-5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 - 5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 35 10 15 40 13 27 15 -5 -150 12 49 37 - 150 37 37 37 37 37 37 37 37 0 1 L G 4 5 68 10 Joo ISD 150 Is 10D OS 36 35 35 35 35 bs 35 35BS JO 10 ID ID 10 10 ID 10 10 GY6 16 er 15 IS 15 15 15 15 40 40 40 40 40 40 40 40 40 40 13 13 12 1e 12 12 12 12 12 Revenu Cmoeimplio e Tant material Stappe cost Amstb zatis Operating Result (EBUT) Taxes 67) Sodety (33%) 13 Net Beaud Amor bizan walking capital Requirement Investments -150 Terminal value Available cash flow - 150 27 23 27 23 27 27 2 27 27 + 5 15 16 5 15 15 15 15 15 15 .3 -S -5 -5 -5 -5 + 87 37 37 37 37 87
