Question: Only do this in Excel ( with formulas shown) - I am not here for a quick answer! I want to know how to do

Only do this in Excel ( with formulas shown) - I am not here for a quick answer! I want to know how to do the formulas in Excel.

1)Use the attached file to answer all of the questions in this evaluation. VDrink Template.xlsx Using the above template compute the NPV of the project and record the answer to the nearest penny.

2) Using the template compute the IRR for project. Record your answer as a percentage, so if your answer is 15.54% record the answer as 15.54. Do not include the % sign.

3) Compute the payback of the project and record your answer to the nearest hundredth of a year. So if the payback is 2.3333 years record the answer as 2.33.

4)Create a NPV profile of the project with interest rates from 0 to 20% in increments of 2%. Record your answer for the NPV of the project when interest rates are 20%.

5)Copy and paste your cash flow analysis and results into a tab. Name that tab Inflation. Adjust the cash flows assuming that inflation will increase all variable cash flows at the rate of 2% per year starting in year 2 (therefore year one cash flows are not changed, but the remaining variable cash flows will be adjusted).

Record the free cash flow in year 2 below.

6)What is the new NPV of the inflation adjusted project, given an interest rate of 12%?

7)Copy and paste the ORIGINAL TEMPLATE into another tab and name the tab Scenario. Adjust the units sold assuming that you only expect to sell half as many as originally forecasted. What is the NPV given this new expectation for sales and a 12% cost of capital?

8)If the probability of the original sales is 50% and the probability of the depressed sales forecast is 50%, what is your expected NPV given a rate of 12%

Only do this in Excel ( with formulas shown) - I am

V Drink Template Numbers below are adjusted from previous problem, but are similar Modify this template to solve the remaining problems

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!