Question: Develop a spreadsheet model, and use it to find the project's NPV , IRR, and payback. Round your answer for the NPV to the nearest
Develop a spreadsheet model, and use it to find the project's NPV IRR, and payback. Round your answer for the NPV to the nearest dollar and for the IRR and payback to two decimal places.
NPV$fill in the blank IRRfill in the blank Regular payback periodfill in the blank years
Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables' values at and above and below their basecase values. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any.
Deviation fromNPV with Variables at Different Deviations from BaseBase CaseSales PriceVariable Cost per UnitNumber of Units Sold$fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank $fill in the blank
Choose the correct graph.
A
B
C
D
The correct graph is
graph Agraph Bgraph Cgraph D
Now conduct a scenario analysis. Assume that there is a probability that bestcase conditions, with each of the variables discussed in Part b being better than its basecase value, will occur. There is a probability of worstcase conditions, with the variables worse than base, and a probability of basecase conditions. Round your answers for the NPV and standard deviation to the nearest dollar and for the coefficient of variation to two decimal places. Use a minus sign to enter a negative value, if any.
ScenarioNPVBest Case$fill in the blank Base Case$fill in the blank Worst Case$fill in the blank Expected NPV$fill in the blank Standard Deviation$fill in the blank Coefficient of Variationfill in the blank
If the project appears to be more or less risky than an average project, find its riskadjusted NPV IRR, and payback. Round your answer for the NPV to the nearest dollar and for the IRR and payback to two decimal places. Use a minus sign to enter a negative value, if any.
Riskadjusted NPV$fill in the blank Riskadjusted IRRfill in the blank Riskadjusted regular payback periodfill in the blank years
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