Your firm may purchase certain assets from a struggling competitor. The competitor is asking $50,000,000 for the assets. Last year, the assets produced revenues of $15,000,000. Revenues earned in the next year (i.e., year 1) and in future years are estimated using the information in the table below.

Your staff expects that the following assumptions will hold over the operating period:

• The assets will be viable for another 10 years but will be worthless at the end of the 10 year period
• The assets are qualified by the IRS for depreciation using the straight-line method
• The firm will have a tax rate of 20%

Your staff has also identified three key areas of uncertainty, which include

	Worst-Case	Base-Case	Best-Case
Cash Expenses as a % of Revenues	60%	55%	45%
WACC	20%	15%	8%
Revenue Growth Rate	-10%	0%	7%
Probability	10%	80%	10%

For this case, address the following goals (each goal should be shown in a separate worksheet in an Excel workbook; provide labels on each worksheet):

Goal 2- Calculate the NPV and IRR for each scenario. Within the Goal 2 worksheet, discuss/interpret the NPV and IRR values that you have calculated in terms of whether the acquisition should be accepted or rejected.