Question: these are the tasks of case study i send u my question in different pictures because it is not possible to send u this long

these are the tasks of case study i send u my question in different pictures because it is not possible to send u this long question in one picture

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61420/Downloads/Assignment962binformation.pdf Your tasks: Based on the information in the case study. P. De Potato has asked you to write a report to TDT's management advising them as to the best course of action regarding this project. Your report should address the following specific questions asked by management 1. Discuss which costs are relevant for the evaluation of this project and which costs are not. Your discussion should be justified by a valid argument and supported by references to appropriate sources 2. Determine the initial investment cash flow 3. Estimate all operating cash flows associated with the project over 5 years. 4. Calculate the project's payback period. Assuming the business could be sold at the end of the five years for $1 million. Briefly comment on your results 5. Calculate the Net present value (NPV) of the project. assuming that the initial investment could be sold at the end of the five years for $1 million Briefly comment on your results and make appropriate remarks on the assumptions made for these calculations if necessary 6. Estimate the Internal rate of return (IRR) of the project. Briefly comment on your results 7. Using sensitivity analysis, recalculate NPV using the scenario of a. A decrease in project sales by 10% annually b. An increase of the sale price by 50% annually c. An increase of material costs change from 3 5% to 8%

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