Question: excel please show all work and excel formuls Scenario Analysis (Excel Scenario Manager) Scenario analysis is used to determine the range of possible outcomes for

excel please show all work and excel formuls excel please show all work and excel formuls Scenario Analysis (Excel Scenario

Scenario Analysis (Excel Scenario Manager) Scenario analysis is used to determine the range of possible outcomes for a project. Typically, the base case, best (optimistic) case, and worst (pessimistic) case values are calculated when doing scenario analysis. Because of the repetitive nature of the calculations, spreadsheets are an excellent tool for doing the analysis. Consider the Sonar Electronics Corporation solar- powered jet engine project presented in the example in the textbook: Base case 0 2,000,000 1,000,000 1.940,000,000 Pessimistic 5.000 20% Expected or Best 10,000 30% Optimistic 20,000 50% Unit sales: Price per unit Variable costs per unit: Fixed costs per year: Market size (per year) Market share Units sold (per year Price Variable cost (per engine) Fixed cost (per engine) Investment 1.900.000 1.200,000 2,000,000,000 1,900,000,000 2,000,000 1,000,000 1,940,000,000 1,500,000,000 2,200,000 800,000 1.740,000,000 1,000,000,000 Initial cost: Project life (years): Required retum: Tax rate: 1.500,000,000 3 15% 21% With these values, we need to calculate the base case, best case, and worst case NPVs and IRRs. First, we want to calculate the NPV and IRR with the base case projections, which are: Base Case Income Statement Sales Variable costs Fixed costs Depreciation EBIT Taxes (21%) Net income OCH NPV

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