Scenario $1$:

Using the data provided in case $($after your adjustments to incorporate your knowledge of incremental CF$),$ what is the NPV of the project?

NPV:

Scenario $2$: $($right click and copy your adjusted Scenario $1$ to a new tab, alter the growth assumptions$)$

You are concerned that the energy costs, labor costs, and material costs will increase by $5$ percent per year, starting in year $2($included$).$ You are unsure whether you will be able to adjust the shelf price per unit correspondingly. What is the NPV under the assumption that costs increase but you cannot increase prices?

NPV:

Scenario $3$: $($right click and copy your adjusted Scenario $1$ to a new tab, alter the growth assumptions$)$

You are concerned that the energy costs, labor costs, and material costs will increase by $5$ percent per year, starting in year $2($included$).$ Alternatively, if you believe that you will be able to increase the price per unit by $5$ percent per year, starting in year $2,$ with the consequence being to decrease sales volumes by $2$ percent a year, starting in year $2.$ What is the NPV under these new assumptions?

NPV:

Deliverables:

$1)$ Prepare the provided slides to discuss your recommendation $($ie Go or No Go$)$ to the Board of Directors.$$You may include additional slides. Address the cash flow elements from the slides to explain how you adjusted your model. Consider, how should the board incorporate the multiple scenarios? Note: The company does NOT get to choose which scenario will happen!

$2)$ Submit your adjusted Excel model.