You project that your craft beverage sales will start at ( $ 85,000 ) in year 1 and grow at ( 7.5 % ) annually after that. Additional assumptions are found below in Exhibit 3; where the renovation and equipment costs are one-time capital expenditures and the increase in repairs, maintenance, and utilities, is an annual cost. Exhibit 3: Building Craft Brewery Assumptions 2) Build option - Terminal A: Cease operations a. What are the relevant costs and benefits of starting the brewery? b. Are any costs or benefits irrelevant? c. What is the NPV of starting the brewery? d. What is the IRR? e. Do the NPV and IRR decision making rules agree? f. Sensitivity analysis i. Construct a cost of capital sensitivity table for all valuation types with costs of capital ranging from ( 11 % ) to ( 15 % ) in increments of ( 0.5 % ). That is fill in the following chart: i. Construct ( 3 imes 3 ) NPV and IRR Sensitivity Analyses reflecting the following information

You project that your craft beverage sales will start at $85,000 in year 1 and grow at 7.5% annually after that. Additional assumptions are found below in Exhibit 3; where the renovation and equipment costs are one-time capital expenditures and the increase in repairs, maintenance, and utilities, is an annual cost. Exhibit 3: Building Craft Brewery Assumptions 2) Build option - Terminal A: Cease operations a. What are the relevant costs and benefits of starting the brewery? b. Are any costs or benefits ifrelevant? c. What is the NPV of starting the brewery? d. What is the IRR? e. Do the NPV and IRR decision making rules agree? f. Sensitivity analysis 1. Construct a cost of copital sensitivity table for all valuation types with costs of capital ranging from 11% to 15% in increments of 0.5%. That is fill in the following chart: 1. Construct 33 NPV and IRR Sensitivity Analyses reflecting the following information