CAN SOMEONE PLEASE ANSWER THIS BY MIDNIGHT, IF NOT DONT WORRY OR DO IT THANKS

0 1 Figure 13-2 Analysis of a New (Expansion) Project: Cash Flows and Performance Measures (Dollars in Thousands) Part 2. Cash Flows and Performance Measures Intermediate Calculations Unit sales Sales price per unit Variable cost per unit (excl. depr.) Nonvariable costs (excl. depr.) Sales revenues = Units x Price/unit NOWC+ = 15%(Revenuest+1) Basis for depreciation Annual depreciation rate (MACRS) Annual depreciation expense Remaining undepreciated value (book value) Cash Flow Forecast 10,000 $1.50 $1.07 $2,120 $15,000 $2,691 2 11,500 $1.56 $1.10 $2,184 $ 17,940 $3,218 3 13,225 $ 1.62 $1.14 $2,249 $21,456 $3,849 4 15,209 $1.69 $1.17 $2,317 $25,662 $0 $2,250 $7,750 33.33% $2,583 $5,167 44.45% 14.81% $3,445 $1,148 $1,722 $574 Cash Flows at End of Year 2 7.41% $574 $0 0 1 3 4 $15,000 $10,700 $2,120 $2,583 -$403 $ 161 -$242 $2,583 $17,940 $12,674 $2,184 $3,445 -$363 $ 145 -$218 $3,445 $21,456 $15,013 $2,249 $1,148 $3,047 $1,219 $1,828 $1,148 $25,662 $17,782 $2,317 $574 $4,988 $1,995 $2,993 $574 Sales revenues = Units Price/unit Variable costs = Units x Cost/unit Nonvariable costs (excluding depr.) Depreciation Earnings before int. and taxes (EBIT) Taxes on operating profit (40% rate) Net operating profit after taxes (NOPAT = EBIT*(1-T)) Add back depreciation Equipment purchases -$7,750 Salvage value Cash flow due to tax on salv. val. Cash flow due to change in WC -$2,250 Opportunity cost, after taxes $0 After-tax externalities Project cash flows: Time Line (for capital budgeting) -$10,000 Project Evaluation Measures NPV $1,048 =NPV(K75,L112:0112)+K112 IRR 13.79% =IRR(K112:0112) $639 -$441 $0 $0 $1,900 -$527 $0 $0 $2,700 -$631 $0 $0 $2,345 -$256 $3,849 $0 $0 $7,800 WACC = 10% 0 0 Qle Conduct a scenario analysis by changing the project assumptions. Produce two (2) additional sets of inputs for the project cash flow forecast, one where the project is still value-adding and worth pursuing, and the second where the project is NOT value-adding and should not be pursued. You should adjust at least 2 inputs each time (aka create a new "scenario"). Please identify your changes clearly. Show your work next to the column with the base case assumptions. SHOW WORK HERE Forecast Input Alt forecast #1 (value Alt forecast #2 (paste scenario as adding) (NOT value adding) Key Inputs numbers here) Base case Equipment cost $7,750.0 $7,750 Salvage value, equipment, Year 4 $639.00 $639 Opportunity cost (annual dollar amount) $0 Externalities (e.g. cannibalization, complementary sales; annual dollar amount) $0 Units sold, Year 1 10000 10,000 Annual change in units sold, after Year 1 15.0% 15% Sales price per unit, Year 1 $1.50 $1.50 Annual change in sales price, after Year 1 4.0% 4% Variable cost per unit (VC), Year 1 $1.07 $1.07 Annual change in VC, after Year 1 3.0% 3% Nonvariable cost (Non-VC), Year 1 $2,120 $2,120 Annual change in Non-VC, after Year 1 3.0% 3% Project cost of capital, r(WACC) 10.0% 10% Tax rate 40% 40% Working capital as % of next year's sales 15% 15% Project NPV Project IRR 0 1 Figure 13-2 Analysis of a New (Expansion) Project: Cash Flows and Performance Measures (Dollars in Thousands) Part 2. Cash Flows and Performance Measures Intermediate Calculations Unit sales Sales price per unit Variable cost per unit (excl. depr.) Nonvariable costs (excl. depr.) Sales revenues = Units x Price/unit NOWC+ = 15%(Revenuest+1) Basis for depreciation Annual depreciation rate (MACRS) Annual depreciation expense Remaining undepreciated value (book value) Cash Flow Forecast 10,000 $1.50 $1.07 $2,120 $15,000 $2,691 2 11,500 $1.56 $1.10 $2,184 $ 17,940 $3,218 3 13,225 $ 1.62 $1.14 $2,249 $21,456 $3,849 4 15,209 $1.69 $1.17 $2,317 $25,662 $0 $2,250 $7,750 33.33% $2,583 $5,167 44.45% 14.81% $3,445 $1,148 $1,722 $574 Cash Flows at End of Year 2 7.41% $574 $0 0 1 3 4 $15,000 $10,700 $2,120 $2,583 -$403 $ 161 -$242 $2,583 $17,940 $12,674 $2,184 $3,445 -$363 $ 145 -$218 $3,445 $21,456 $15,013 $2,249 $1,148 $3,047 $1,219 $1,828 $1,148 $25,662 $17,782 $2,317 $574 $4,988 $1,995 $2,993 $574 Sales revenues = Units Price/unit Variable costs = Units x Cost/unit Nonvariable costs (excluding depr.) Depreciation Earnings before int. and taxes (EBIT) Taxes on operating profit (40% rate) Net operating profit after taxes (NOPAT = EBIT*(1-T)) Add back depreciation Equipment purchases -$7,750 Salvage value Cash flow due to tax on salv. val. Cash flow due to change in WC -$2,250 Opportunity cost, after taxes $0 After-tax externalities Project cash flows: Time Line (for capital budgeting) -$10,000 Project Evaluation Measures NPV $1,048 =NPV(K75,L112:0112)+K112 IRR 13.79% =IRR(K112:0112) $639 -$441 $0 $0 $1,900 -$527 $0 $0 $2,700 -$631 $0 $0 $2,345 -$256 $3,849 $0 $0 $7,800 WACC = 10% 0 0 Qle Conduct a scenario analysis by changing the project assumptions. Produce two (2) additional sets of inputs for the project cash flow forecast, one where the project is still value-adding and worth pursuing, and the second where the project is NOT value-adding and should not be pursued. You should adjust at least 2 inputs each time (aka create a new "scenario"). Please identify your changes clearly. Show your work next to the column with the base case assumptions. SHOW WORK HERE Forecast Input Alt forecast #1 (value Alt forecast #2 (paste scenario as adding) (NOT value adding) Key Inputs numbers here) Base case Equipment cost $7,750.0 $7,750 Salvage value, equipment, Year 4 $639.00 $639 Opportunity cost (annual dollar amount) $0 Externalities (e.g. cannibalization, complementary sales; annual dollar amount) $0 Units sold, Year 1 10000 10,000 Annual change in units sold, after Year 1 15.0% 15% Sales price per unit, Year 1 $1.50 $1.50 Annual change in sales price, after Year 1 4.0% 4% Variable cost per unit (VC), Year 1 $1.07 $1.07 Annual change in VC, after Year 1 3.0% 3% Nonvariable cost (Non-VC), Year 1 $2,120 $2,120 Annual change in Non-VC, after Year 1 3.0% 3% Project cost of capital, r(WACC) 10.0% 10% Tax rate 40% 40% Working capital as % of next year's sales 15% 15% Project NPV Project IRR