Question: Sunrise Bakery Capstone Case questions In this case analysis, our objective is to will bring together all the tools ve picked up throughout the four

Sunrise Bakery Capstone Case questions In this
Sunrise Bakery Capstone Case questions In this case analysis, our objective is to will bring together all the tools ve picked up throughout the four modules incorporating discounted cash flows estimating free cash flow forecasts ...alyzing the cost of capital and comp"tic, various capital budgeting tools The open ended platform of a case study is to put the tools and co..cepts we have je eloped into .. "ore real- world and practical setting using this infor * ation give.. in the case, your job is to figure out whether or not to make the investment by computing all of the capital budgeting tools that we covered in week This involves calculation of the free cash flows following the process we outlined in wee 3 and computing the discount rate we covered in week - _xhibit 2 below provides a worksheet for calculating the free cash flows using the financial statement forecast given in Exhibit . In addition to the worksheet pro. ided in Exhibit 2, a spreadsheet template has also been uploaded 'lease feel free to use this template to complete the case using the spreadsheet tools we covered in ween's one and two I what is the cost of debt for Lunrise Bakery? 2 what is their cost of equity? 3 What is the WACO? 4 Which cost of capital should be used to evaluate the feasibility of the oven purchase? 5 Calculate the annual depreciation expense for sunrise capital. 6 what is the after tax net income in each of the six years? Calculate the change in working capital each year from the projected financial statements 3 What is the terminal value of the project at the end of year o? y Compute the free cash flows for each year IV what is the :RY 1 1. Calculate the NPV. 12. Using payback Analysis, how many years until the project pays off the investment? 13. What is the return on invested capital:" 14. Should Sunrise Bakery purchase the new oven

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