W Background You have recently been hired as the Senior Cammercial Finance Manager For a telecommunications company. One of your respansibilities is to provide nancial analysis and support For the company's product development process. The company is considering launching a new mobile phone plan and has provided you with the Following information: o The estimated revenue For the rst year of the product launch is $20 million. The estimated cost of goods sold (COGS) For the rst year is $6 million. The estimated marketing and advertising expenses For the rst year are $4 million. The estimated xed costs For the rst year are $2 million. The operating expenses are expected to be 64 million in the First year. but due to the company's exposure to foreign currency risk, it is possible that the operating expenses will increase or decrease by 10% depending on the currency fluctuations. The product has a lifecycle oF three years, and sales are expected to grow at a rate af1096 each year. The company's required rate of return is 1596. Task: Develop a nancial model to evaluate the potential protability of the new mobile phone plan launch, with a Focus on operating expenses and the impact of Foreign currency fluctuation. Your model should include the Following: .N An income statement for the first year of the product launch. showing revenue, COGS. gross profit. operating expenses, operating income, and net income. A cash flow statement for the rst year of the product launch, showing cash inflows and outflows. A three-year nancial Forecast for the product. showing revenue, COGS. gross prot. operating expenses, operating income, and net income. A break-even analysis for the product launch. showing the number of subscribers that need to be acquired to break even. A sensitivity analysis for the product launch. showing the impact of changes in operating expenses due to Foreign currency uctuation on the protability of the product. Assumptions: 0 The mobile phone plan will be sold for $50 per month. and the average revenue per user (ARPU) is $40. The C008 includes the cost of the mobile phone plan. customer support, and network usage Fees. The marketing and advertising expenses include the cost oF promotional materials. events, and advertising campaigns. The xed costs include the cost of rent, utilities, and other administrative expenses. The sales growth rate of 10% each year is compounded annually. The required rate oF return is the same For all years oF the product lifecycle. The NPV analysis should use a discount rate of 15%. The currency fluctuation sensitivity analysis should consider a 10% increase or decrease in the operating expenses due to foreign currency uctuations. Instructions; Develop an Excel spreadsheet to create your financial model. Show all calculations in your spreadsheet. Present your ndings in a professional report Format using PowerPoint. Include a summary of your ndings. conclusions, and recommendations. Your report should be no more than 5 slides. You can also provide the excel spreadsheet to show your nancial model. WPWP!' Time allowed: 3 hours