Question

The expected annual free cash flow for the GPS tracker investment from is computed as follows:
Construct a spreadsheet model to compute free cash flow that relies on the following assumptions or estimates:
b. What level of annual unit sales does it take for the investment to achieve a zero NPV? Use your spreadsheet model to answer this question. (Hint: Use the Goal Seek function in Excel.)
c. If unit sales were 15% higher than the base case, what unit price would it take for the investment to achieve a zero NPV?


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  • CreatedNovember 13, 2015
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