Question: Please send excel file. Question 5 ( based on Week 7 Excel Examples - Chapter 1 8 ) Angola Superheros, Inc. is considering launching a
Please send excel file.
Question based on Week Excel Examples Chapter
Angola Superheros, Inc. is considering launching a production of a new superhero toy. The production and sales are expected to last years. The project would require a new machine, with a cost of $ The machine is expected to be sold for $ at the end of the project. The company estimates that toys would be sold annually, with a $ contribution margin per unit the difference between the selling price and the variable cost per unit In addition, the company will have to pay fixed costs equal to $ each year. The minimum attractive rate of return is Note: You will need to provide a written answer for part a and written comments discussing the results of your analysis in part bNote: Do not include the selling price or the variable cost per unit in your analysis. Also, you will need to work with the total contribution to profits for all units, and fixed costs, instead of Revenues and Costs.
a Compute the project's cash flows for years calculate the present worth, annual worth, and the rate of return of the project, and determine whether the project should be accepted, based on the information given disregarding any sensitivity analysis Explain your answer.
b Conduct the following sensitivity analysis, using the project's ANNUAL WORTH. Create a table where you vary the following variables, one at a time: the contribution margin per unit, the annual number of units sold, the annual fixed cost, and the machine's salvage value at the end of the project. Create a table, starting with a Percent Change in its first column, with the following values: and Follow with each variable and an Annual Worth column, corresponding to each of the variables you vary. You can use the Excel example file posted under Week as your guide your tables and set up will be slightly different, but similar Vary each of the variables ranging from to one at a time, while keeping all of the other variables at their baseline values, recomputing the project's annual worth each time. Insert a chart with the percent change on the horizontal axis, and the contribution margin, number of units, fixed cost, and salvage value on the vertical axis. Comment on the sensitivity of the project's annual worth to changes in each of the four variables, and the implications for accepting or rejecting the project.
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