3 3 3 Project Description and Details This company is based in Massachusetts and distributes their...

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3 3 3 Project Description and Details This company is based in Massachusetts and distributes their flavored seltzers nationally. While they have a large, loyal customer following, the company has exchanged hands multiple times. The current owners want out of the business, but it is uncertain as to why this is the case. The company is undervalued and the sale price reflects this. _0 1 Calculation of Minimum Payback Period: _2 3 Project Cost (Initial First Year Cash Investment) Flow $15,000,000 Years $8,500,250 Annual Growth Rate (5 years) 3.25% Expenses as a Payback percentage of Period Revenues 54% NPV IRR 10 11 Calculation of Minimum Payback Period: 12 L3 14 15 NPV of Projected Cash Flows 16 17 18 Projected Revenues at annual growth rate 19 Projected Expenses at 54% of Revenue 20 Annual Cash Flows 21 Discount rate for each year (6%) 22 Present value of cash flows 23 24 NPV of Projected Cash Flows 25 Year 0 Cash Flow Years Year 1 Cash Flow Year 2 Cash Flow $8,500,250 $13,090,385 Year 3 Cash Flow Year 4 Cash Flow Year 5 Cash Flow NPV of Projected Cash Flows Internal Rate of Return (IRR): 3 3 3 Project Description and Details This company is based in Massachusetts and distributes their flavored seltzers nationally. While they have a large, loyal customer following, the company has exchanged hands multiple times. The current owners want out of the business, but it is uncertain as to why this is the case. The company is undervalued and the sale price reflects this. _0 1 Calculation of Minimum Payback Period: _2 3 Project Cost (Initial First Year Cash Investment) Flow $15,000,000 Years $8,500,250 Annual Growth Rate (5 years) 3.25% Expenses as a Payback percentage of Period Revenues 54% NPV IRR 10 11 Calculation of Minimum Payback Period: 12 L3 14 15 NPV of Projected Cash Flows 16 17 18 Projected Revenues at annual growth rate 19 Projected Expenses at 54% of Revenue 20 Annual Cash Flows 21 Discount rate for each year (6%) 22 Present value of cash flows 23 24 NPV of Projected Cash Flows 25 Year 0 Cash Flow Years Year 1 Cash Flow Year 2 Cash Flow $8,500,250 $13,090,385 Year 3 Cash Flow Year 4 Cash Flow Year 5 Cash Flow NPV of Projected Cash Flows Internal Rate of Return (IRR):

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SOLUTION Project Description and Details Project Name Flavored Seltzer Distribution Company Project ... View the full answer