Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What would the NPV of the project be for varying sales growth of 27%, 17%, and 1.7%? (The Yellow Cells) 0 2 3 S S
What would the NPV of the project be for varying sales growth of 27%, 17%, and 1.7%? (The Yellow Cells)
0 2 3 S S (933,000.00) (120,710.00) S S 4900 S 80.00 $ 392,000.00 $ 5,733.00 S 80.00 $ 458,640.00 $ 6,707.61S 80.00 $ 536,608.80S 7,847.90 80.00 627,832.30 Timeline: Year II. Net Investment Outlay = Initial CFs Price of Equipment Change in NWC III. Cash Flows from Operations Revenue Generation Unit Sales Unit Sale Price Revenues Costs Variable Costs Fixed Costs Depreciation Earnings Before Taxes Taxes Net Income Depreciation Net operating CFS IV. Terminal Cash Flows Salvage Value Tax on Salvage Value Return of NWC V. Final Cash Flow Cash Flows Present Value of CFS S $ S S S $ S S (35.280.00) S (259,830.00) $ (233,250.00 $ (136,360.00) $ 44,998.80 $ (91,361.20) $ 233,250.00 141.888.80S (41,277.60) $ (259,830.00) $ (233,250.00) $ (75,717.60) $ 24,986.81 $ (50,730.79) $ 233,250.00 $ 182,519.21 $ (48,294.79) S (259,830.00) $ (233,250.00) (4,765.99) S 1,572.78 $ (3.193.21) 233.250.00 S 230,056.79$ (56,504.91) (259,830.00) (233,250.00) 78,247.39 (25,821.64) 104,069.03 233,250.00 337,319.03 S S S S S S S S S S $ S 122,311.00 (40,362.63) 120,710.00 S S (1,053,710.00) (1,053,710.00) 141,888.80 $ 133,128.92 182,519.21 $ 160,678.27S 230,056.79S 190,023.76 $ 539,977.40 418,478.08 NPV of Project (151,400.97) Summarize Answers for NPV under three cases in area below Sales Growth Rate NPV Best Case 27.0% Accept? 82079 17.00% Most Likely -151401 1.7% Worst Case -451781Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started