Question: a . Develop a spreadsheet model, and use it to find the project s NPV , IRR, and payback. Input Data ( in thousands of

a. Develop a spreadsheet model, and use it to find the projects NPV, IRR, and payback. Input Data (in thousands of dollars) Scenario name Base Case Note: the items in red will be used in a scenario analysis. Probability of scenario 50% Equipment cost $10,000 Net operating working capital/Sales 10% Key Results: First year sales (in units)1,000 NPV = $1,378 Sales price per unit $24.00 IRR =1523.0% Variable cost per unit (excl. depr.) $18.00 Payback =2.90 Nonvariable costs (excl. depr.) $1,000 Inflation in prices and costs 3.0% Estimated salvage value at year 4 $500 Depreciation years Year 1 Year 2 Year 3 Year 4 Depreciation rates 20.00%32.00%19.

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