Question: Hi Can you please explain how to finish assignment (part1-4) Graded Assignment 1: Delizzia 0 points possible (ungraded) Delizzia, a family owned business, produces and

 Hi Can you please explain how to finish assignment (part1-4) GradedAssignment 1: Delizzia 0 points possible (ungraded) Delizzia, a family owned business,produces and delivers potato chips to supermarkets and mom & pop stores.Located in Buenos Aires, Argentina, Delizzia is planning to expand its operationsto cover other major Argentinian cities such as Cordoba and Rosario. Thisexpansion will require Delizzia to set up a new distribution center andacquire new vehicles for last-mile distribution. Due to budget constraints, the companywill only be able to expand to one city at a time.

Hi Can you please explain how to finish assignment (part1-4)

Therefore, Delizzia needs to decide if investing in Cordoba or Rosario makesmore economic sense. The company is considering a time horizon of fiveyears to make the decision. Assume the tax rate is 40% andthe discount rate for Delizzia is 15%. Ignore inflation. The table belowshows the projections (incremental sales, COGS, operating expenses and depreciation) anticipated forexpanding Delizzia's operations to Cordoba in millions of Argentine pesos. Cordoba's IncrementalIncome Statement (in millions of Argentine pesos) Year 1 Year 2 Year3 Year 4 Year 5 Sales 60 83 145 157 121 COGS

Graded Assignment 1: Delizzia 0 points possible (ungraded) Delizzia, a family owned business, produces and delivers potato chips to supermarkets and mom & pop stores. Located in Buenos Aires, Argentina, Delizzia is planning to expand its operations to cover other major Argentinian cities such as Cordoba and Rosario. This expansion will require Delizzia to set up a new distribution center and acquire new vehicles for last-mile distribution. Due to budget constraints, the company will only be able to expand to one city at a time. Therefore, Delizzia needs to decide if investing in Cordoba or Rosario makes more economic sense. The company is considering a time horizon of five years to make the decision. Assume the tax rate is 40% and the discount rate for Delizzia is 15%. Ignore inflation. The table below shows the projections (incremental sales, COGS, operating expenses and depreciation) anticipated for expanding Delizzia's operations to Cordoba in millions of Argentine pesos. Cordoba's Incremental Income Statement (in millions of Argentine pesos) Year 1 Year 2 Year 3 Year 4 Year 5 Sales 60 83 145 157 121 COGS 25 30 69 64 53 Gross Income 35 53 76 93 68 Operating Expenses 14 24 40 44 32 Operating Income (EBITDA) 21 29 36 49 36 Depreciation 6 6 6 6 6 Operating Income (EBIT) 15 23 30 43 30 Income Tax 6.0 9.2 12.0 17.2 12.0 Net Operating Profit After Taxes (NOPAT) 9 13.8 18 25.8 18Expanding to Cordoba will require an investment of 30,000,000 Argentine pesos (to be paid in Year 0) to remodel the rented space for the distribution center and purchase the vehicles. Similarly, additional working capital will be required, but it comes in the second half of Year 1 after the remodeling is finished. That is why there is no working capital in Year 0. See table below: Cordoba's Incremental Adjustments (in millions of Argentine pesos) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Depreciation - 6 6 6 6 6 Net Capital Expenditures -30 - - - - - Net Working Capital Investment - -18 -3 0 -16 -7 41 Note.- A negative number for the capital expenditure and working capita represents a cash outflow. The positive working capital cash flow in the final period may not equal the sum of the previous investments due to accounting assumptions, such as not collecting all receivables. The company uses straightline depreciation over 5 years. The terminal value is zero. (The following question has been included for your benet and is not graded.) What are the projected Free Cash Flows for year 5 associated with expanding to Cordoba? Submit Part 1 0.0/1.0 point (graded) The table below shows the projections (incremental sales, COGS, operating expenses and depreciation) anticipated for expanding Delizzia's operations to Rosario in millions of Argentine pesos. Rosario's Incremental Income Statement (in millions of Argentine pesos) Year 1 Year 2 Year 3 Year 4 Year 5 Sales 54 80 145 156 124 COGS Gross Income Operating Expenses Operating Income (EBITDA) Depreciation Operating Income (EBIT) Income Tax Net Operating Profit After Taxes (NOPAT) They company uses straight-line depreciation over 5 years. Assume terminal value of zero. Calculate the projected NOPAT (Net Operating Profit After Tax) for years 1-5. Be sure to enter all of you answers in Argentine pesos Without commas or currency signs. Round your answers to the closest hundred thousands (e.g. if your answer is 32.6 million then you would enter 32.6 and if your answer is -24.1 million you would enter -24.1) What would be the projected NOPAT for year 1 associated with expanding to Rosario? What would be the projected NOPAT for year 1 associated with expanding to Rosario? What would be the projected NOPAT for year 2 associated with expanding to Rosario? What would be the projected NOPAT for year 3 associated with expanding to Rosario? What would be the projected NOPAT for year 4 associated with expanding to Rosario? What would be the projected NOPAT for year 5 associated with expanding to Rosario?Part 2 0.0/1 '0 point (graded) Expanding to Rosario will require an investment of 50,000,000 Argentine pesos (to be paid in Year 0) to remodel the rented space for the distribution center and purchase the vehicles. Similarly, additional working capital will be required, but it comes in the second half onear 1 after the remodeling is finished. That is why there is no working capital in Year 0. See table below: Rosario's Incremental Adjustments (in millions of Argentine pesos) Depreciation Net Capital Expenditures Net Working Capital Investment \\lote.- A negative number for the capital expenditure and working capital represents a cash outflow. The positive working capital cash flow in the final period may not equal the sum of the previous investments due to accounting assumptions, such as not collecting all receivables. Calculate the projected Free Cash Flows immediately and for years 15. Be sure to enter all of you answers in Argentine pesos Without commas or currency signs. Round your answers to the closest hundred thousands (eg. if your answer is 326 millions then you would enter 32.6 and if your answer is -24. 7 mil/ions you would enter -24.1,) What are the projected Free Cash Flows immediately associated with expanding to Rosario? What are the projected Free Cash Flows for year 1 associated with expanding to Rosario? What are the projected Free Cash Flows for year 2 associated with expanding to Rosario? What are the projected Free Cash Flows for year 3 associated with expanding to Rosario? What are the projected Free Cash Flows for year 4 associated with expanding to Rosario? Part 3 0.0/1.0 point (graded) To prepare a convincing presentation on the initiatives' feasibility, you have been asked to calculate the Net Present Value (NPV) for both initiatives. Be sure to enter all of you answers in Argentine pesos without commas or currency signs. Round your answers to the closest hundred thousands (eg. if your answer is 32.6 million then you would enter 32.6 and if your answer is -24.1 mil/ions you would enter -24. 1) What is the NPV for expanding Delizzia's operations to Cordoba? What is the NPV for expanding Delizzia's operations to Rosario? Submit You have used 0 of 2 attempts Save Part 4 0.0/1.0 point (graded) Which city should the company choose for expanding its operations? Select the best answer QCordoba O Rosario Submit You have used 0 of1 attempt Save

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