Question: Given the information below, calculate the NPV's (using the NPV Excel formula) for the following scenarios: Base NPV Part a Part b Part c
Given the information below, calculate the NPV's (using the NPV Excel formula) for the following scenarios: Base NPV Part a Part b Part c Best Case - Unit price, unit sales go up by 10%, variable and fixed costs go down by 10% Worst Case - Unit price, unit sales go down by 10%, variable and fixed costs go up by 10% Base information remains the same between scenarios except for the variables in parts b and c. Base Info Unit price Variable cost per unit Fixed Costs Expected Sales (units) Required rate of return Tax Rate Cost of machine Salvage Value Life Working Capital Increase 125.00 75.00 250,000.00 10,000.00 units 0.13 0.21 1,000,000.00 10.00 Years 25,000.00
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