B H A. Inputs Initial investment ($ thousands) Salvage value ($ thousands) Initial revenues ($ thousands) Variable costs (% of revenues) Initial fixed costs ($ thousands) Initial total expenses ($ thousands) Inflation rate (%) 10,000 2,000 15,000 40.0% 4,000 10,000 5.0% 12.0% Discount rate (%) Receivables (% of sales) 16.7% Inventory (% of next year's costs) Tax rate (%) 15.0% 35.0% 31 Year: 0 1 2 4. 5 6 B. Fixed assets Investments in fixed assets 10,000 Sales of fixed assets 1,300 Cash flow from fixed assets -10,000 1,300 C. Operating cash flow 16,538 6,615 4,410 2,000 15,000 Revenues 15,750 17,364 18,233 Variable expenses 6,300 6,000 6,946 7,293 Fixed expenses 4,631 4,000 4,200 4,862 2,000 Depreciation 2,000 2,000 2,000 Pretax profit 3,513 3,788 4,078 3,000 3,250 1,229 1,138 1,326 Tax 1,050 1,427 Profit after tax 2,462 2,650 1,950 2,113 2,283 4,283 Operating cash flow 3,950 4,113 4,462 4,650 D. Working capital Working capital Change in working capital Cash flow from investment in working capital 4,493 4,279 1,500 4,075 4,717 3,039 0 214 -214 1,500 -1,679 2,575 204 225 -3,039 -1,500 -2,575 -204 -225 1,679 3,039 0.408 0.408 0.408 0.408 0.250 E. Project valuation Total project cash flow 1,375 6,329 -11,500 3,909 4,069 4,238 4,339 Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic 251 polnts 45 Initial investment Revenues Skipped Variable costs Fixed cost Working capital -30 Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calcu lations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.) ok Print Project NPV Pessimistic Expected Optimistic Initial investment Revenues Variable costs Fixed costs Working capital