Use the attached file to answer all of the questions in this evaluation.

VDrink Template.xlsx

Using the above template compute the NPV of the project and record the answer to the nearest penny.

$3$ points

QUESTION $2$

Using the template compute the IRR for project. Record your answer as a percentage, so if your answer is $15\mathrm{.}54\%$ record the answer as $15\mathrm{.}54.$ Do not include the $\%$ sign.

$3$ points

QUESTION $3$

Compute the payback of the project and record your answer to the nearest hundredth of a year. So if the payback is $2\mathrm{.}3333$ years record the answer as $2\mathrm{.}33.$

$3$ points

QUESTION $4$

Create a NPV profile of the project with interest rates from $0$ to $20\%$ in increments of $2\%.$ Record your answer for the NPV of the project when interest rates are $20\%.$

$3$ points

QUESTION $5$

Copy and paste your cash flow analysis and results into a tab. Name that tab $$Inflation$.$ Adjust the cash flows assuming that inflation will increase all variable cash flows at the rate of $2\%$ per year starting in year $2($therefore year one cash flows are not changed, but the remaining variable cash flows will be adjusted$).$

Record the free cash flow in year $2$ below.

$3$ points

QUESTION $6$

What is the new NPV of the inflation adjusted project, given an interest rate of $12\%?$

$3$ points

QUESTION $7$

Copy and paste the ORIGINAL TEMPLATE 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. What is the NPV given this new expectation for sales and a $12\%$ cost of capital?

$3$ points

QUESTION $8$

If the probability of the original sales is $50\%$ and the probability of the depressed sales forecast is $50\%,$ what is your expected NPV given a rate of $12\%?f^x$