Problem 3-2 Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Enter the given values from the text book here Straight-Line #DIV/0! Enter the given values from the text book here Base cas Worst case Best Case Unit sales Price per unit Vanable cost per unit Foxed costs art a. Expected Case Solution Revenues Variable cost Faced Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less CAPEX less: Working capital investment Free cash flow NPV Parth Breakeven uns annual sales xpecte annual lee Cast IIOW acker from Problem 3-1 is computed as follows: Revenues $1,250,000 Variable cost 750,000 Fixed expenses 250,000 Gross profit $ 250,000 Depreciation 100,000 Net operating income $ 150,000 Income tax expense 51,000 NOPAT $ 99,000 Plus: depreciation 100,000 Less: CAPEX Less: working capital investment Free cash flow $ 199,000 revunel me this question F D Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Straight-Line #DIV/0! Enter the given values from the text book here Enter the given values from the text book here Base Case Worst case Best Case Unit sales Price per unit Variable cost per unit Fixed costs Expected Case Solution Revenues Vanable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less: CAPEX less: Working capital investment Free cash flow NPV Breakeven unit annual sales Breakeven unit price (unit sales +15%) a. Construct a spreadsheet model to compute free cash flow that relies on the following assumptions or estimates: Values Base Case Esti- mates Initial cost of equip- $1,000,000.00 ment 10 years Project and equip- ment life $0 Salvage value of equipment $0 Working capital re- quirement Depreciation method Straight-line $100,000.00 Depreciation ex- pense Discount rate 10.00% Tax rate 34.00% Unit sales 10,000 Price per unit $125.00 Variable cost per $75.00 unit Fixed costs $250,000.00 b. What level of annual unit sales does it take for the investment to achieve a zero NPV? Use your spreadsheet model to answer this question. (Hint: Use the Goal Seek function in Excel.) c. If unit sales were 15% higher than the base case, what unit price would it take for the investment to achieve a zero NPV? Problem 3-2 Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Enter the given values from the text book here Straight-Line #DIV/0! Enter the given values from the text book here Base cas Worst case Best Case Unit sales Price per unit Vanable cost per unit Foxed costs art a. Expected Case Solution Revenues Variable cost Faced Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less CAPEX less: Working capital investment Free cash flow NPV Parth Breakeven uns annual sales xpecte annual lee Cast IIOW acker from Problem 3-1 is computed as follows: Revenues $1,250,000 Variable cost 750,000 Fixed expenses 250,000 Gross profit $ 250,000 Depreciation 100,000 Net operating income $ 150,000 Income tax expense 51,000 NOPAT $ 99,000 Plus: depreciation 100,000 Less: CAPEX Less: working capital investment Free cash flow $ 199,000 revunel me this question F D Given Enter the given values from the text book here Initial cost of equipment Project and equipment life Salvage value of equipment Working capital requirement Depreciation method Depreciation expense Discount rate Tax rate Straight-Line #DIV/0! Enter the given values from the text book here Enter the given values from the text book here Base Case Worst case Best Case Unit sales Price per unit Variable cost per unit Fixed costs Expected Case Solution Revenues Vanable cost Fixed Expenses Gross profit Depreciation Net operating income Income tax expense NOPAT plus: Depreciation less: CAPEX less: Working capital investment Free cash flow NPV Breakeven unit annual sales Breakeven unit price (unit sales +15%) a. Construct a spreadsheet model to compute free cash flow that relies on the following assumptions or estimates: Values Base Case Esti- mates Initial cost of equip- $1,000,000.00 ment 10 years Project and equip- ment life $0 Salvage value of equipment $0 Working capital re- quirement Depreciation method Straight-line $100,000.00 Depreciation ex- pense Discount rate 10.00% Tax rate 34.00% Unit sales 10,000 Price per unit $125.00 Variable cost per $75.00 unit Fixed costs $250,000.00 b. What level of annual unit sales does it take for the investment to achieve a zero NPV? Use your spreadsheet model to answer this question. (Hint: Use the Goal Seek function in Excel.) c. If unit sales were 15% higher than the base case, what unit price would it take for the investment to achieve a zero NPV