Question: Can I please see all working, in a step by step manner Question B2 Sirius Music Company is looking to invest in a audiophile quality

 Can I please see all working, in a step by step

Can I please see all working, in a step by step manner

Question B2 Sirius Music Company is looking to invest in a audiophile quality vinyl records. The management has conducted market research and determined that the initial investment needed is $500,000 and the fixed costs associated with such a facility will be $200,000 per annum. Additional information regarding the project is provided in the table below: facility that will allow it to manufacture Estimates Most Likely Item Pessimistic Optimistic 17000 Sales (units) Selling price ($) Variable operating 12500 15000 63 70 76 50 48 46 costs per unit ($) Life of the facility (years) 10 Sirius's cost of capital is 10% per annum. Sirius's CEO is concerned about the variability in the selling price and the life of the facility and their effect on the project NPV. She wants you to conduct appropriate analysis and based on your analysis, identify major uncertainties associated with the project. Show all your work. 12

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