z Range Pessimistic Optimistic + 40% - 25% - 20% + 20% Initial investment Revenues Variable costs Fixed cost Working capital 10 points + 25% + 40% + 40% - 20% - 20% - 35% eBook Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.) Print References Project NPV Expected Pessimistic Optimistic Initial investment Revenues Variable costs Fixed costs Working capital D D E F H 1 I J L M N 0 P Q R $ T U V z AA AB AC AD AE AF AG 1 2 3 4 5 6 7 7 B A. Inputs Initial investment ($ thousands) Salvage value ($thousands) Initial revenues ($thousands) Variable costs % of revenues) Initial Fixed costs ($thousands) Inflation rate (2) Discount rate (%) Receivables (% of sales) Inventory i% of next year's costs) Tax rate (2) 10,000 2,000 15,000 40.0% 4,000 5.0% 12.0% 16.7% 15.0% 21.0% Year: 0 1 1 2 3 3 4 5 6 10,000 B. Fized assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets 1,580 1,580 -10,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 C. Operating cash flow Revenues Variable expenses Fixed expenses Depreciation Pretax profit Tax Profit after tax Operating cash flow 15,000 15,750 16,538 17,364 18,233 6,000 6,300 6,615 6.946 7,293 4,000 4,200 4,410 4,631 4,862 2,000 2,000 2,000 2.000 2,000 3,000 3,250 3,513 3,788 4,078 630 683 738 796 856 2,370 2,568 2.775 2,993 3,221 4,370 4.568 4.775 4.993 5,221 4,279 204 -204 0.408 4.493 214 -214 0.408 4.717 225 -225 0.408 3,039 0 -1.679 3,039 1,679 3,039 0.250 D. Vorking capital Working capital 1,500 4,075 Change in working capital 1,500 2,575 Cash flow from investment in working ca 1,500 2,575 0.408 E. Project valuation Total project cash flow -11,500 1,795 Discount factor 1.000 0.893 PV of cash flow - 11,500 1,603 Net present value 6,113.1 4,364 0.797 3,479 4,561 4,768 0.712 0.636 3,246 3,030 6,900 0.567 3,915 4,619 0.507 2,340 z Range Pessimistic Optimistic + 40% - 25% - 20% + 20% Initial investment Revenues Variable costs Fixed cost Working capital 10 points + 25% + 40% + 40% - 20% - 20% - 35% eBook Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.) Print References Project NPV Expected Pessimistic Optimistic Initial investment Revenues Variable costs Fixed costs Working capital D D E F H 1 I J L M N 0 P Q R $ T U V z AA AB AC AD AE AF AG 1 2 3 4 5 6 7 7 B A. Inputs Initial investment ($ thousands) Salvage value ($thousands) Initial revenues ($thousands) Variable costs % of revenues) Initial Fixed costs ($thousands) Inflation rate (2) Discount rate (%) Receivables (% of sales) Inventory i% of next year's costs) Tax rate (2) 10,000 2,000 15,000 40.0% 4,000 5.0% 12.0% 16.7% 15.0% 21.0% Year: 0 1 1 2 3 3 4 5 6 10,000 B. Fized assets Investments in fixed assets Sales of fixed assets Cash flow from fixed assets 1,580 1,580 -10,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 C. Operating cash flow Revenues Variable expenses Fixed expenses Depreciation Pretax profit Tax Profit after tax Operating cash flow 15,000 15,750 16,538 17,364 18,233 6,000 6,300 6,615 6.946 7,293 4,000 4,200 4,410 4,631 4,862 2,000 2,000 2,000 2.000 2,000 3,000 3,250 3,513 3,788 4,078 630 683 738 796 856 2,370 2,568 2.775 2,993 3,221 4,370 4.568 4.775 4.993 5,221 4,279 204 -204 0.408 4.493 214 -214 0.408 4.717 225 -225 0.408 3,039 0 -1.679 3,039 1,679 3,039 0.250 D. Vorking capital Working capital 1,500 4,075 Change in working capital 1,500 2,575 Cash flow from investment in working ca 1,500 2,575 0.408 E. Project valuation Total project cash flow -11,500 1,795 Discount factor 1.000 0.893 PV of cash flow - 11,500 1,603 Net present value 6,113.1 4,364 0.797 3,479 4,561 4,768 0.712 0.636 3,246 3,030 6,900 0.567 3,915 4,619 0.507 2,340