Illustrate what components would be comprised in spreadsheet

Assignment Help Macroeconomics
Reference no: EM1330786

Description of Sensitivity analysis

Division leaders in JMI's airplane manufacturing plants have asked for your analysis for replacing old manufacturing equipment for standard planes with faster, more costly new equipment next year. This year, though JMI's innovative S2S-900 has experienced moderate initial success, the total aircraft sales have not been as great as in the past, and cash flow has been uneven in this area.

You have been asked to use sensitivity analysis in planning capital budgeting.

Division leaders want to know what would happen to expected cash flows under different discount rates. Others want to know how net present value of the project will vary according to cash flows different from those forecasted.

Explain exactly how a spreadsheet may be set up to build a net present value model for the equipment decision. What components would be included in the spreadsheet? How could you perform sensitivity analysis on the spread sheet?

 

 

Reference no: EM1330786

Questions Cloud

Investment to create comprehensive risk management program : Commit a significant investment to creating and implementing a comprehensive risk management program.
Why x3d is currently replacing vrml : X3D is currently replacing VRML as the nearest the internet gets to Virtual Reality currently. Is X3D suited specifically to certain applications over others? consider an application for the Internet where you believe Virtual Reality would be of b..
Lottery-annuity or lump sum : Assume you won the lottery for $7M. You have the following two choices in how you want to receive your prize: Which is the better option?
Perspectives of human resources management : Perspectives of Human Resources Management - Explain and discuss the operator, manager, executive, and political perspectives on human resources management.
Illustrate what components would be comprised in spreadsheet : Illustrate what components would be comprised in the spreadsheet. Explain how could you perform sensitivity analysis on the spread sheet.
Public relations manipulation : Consider the Whole Foods' CEO case - was it a case of free speech or public relations manipulation?
Explain the human resources model components : Human Resources Model Components - Check the components of the human resources model and how the components interact
Difference between a java compiler and a java interpreter : expalin the difference between a Java compiler and a Java interpreter.
Show the future of human resource management in nonprofits : The Future of Human Resource Management in Nonprofits - Use the Internet to research at least two articles (at least one (1) article FOR and one (1) AGAINST) about the proposed federal Job Creation Tax Credit. Be prepared to discuss.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Ricardian or classical model

What do you regard as the main weaknesses of the Ricardian or Classical model as an explanation of the trade patterns? Why do you regard them as weaknesses?

  Calculation of tradable pollution permits

Assume that there are two power generating plants that emit SO 2  (sulphur dioxide). In the absence of regulation they each emit 10 tons of pollution per month.

  Graphical representation of long run average supply

There are many factors might change AD and AS, and equilibrium. Please evaluate the effect of following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.

  Determining profit maximization level of monopolist

Draw a graph showing hte above situation. Include in that graph, the monopolist's cost curves, demand and marginal revenue curves and the price and quantities that are indicated by the situation described above.

  Government to pretend in ways which socialize financial

Is it ethical for a government to pretend in ways which socialize financial risks or losses.

  Change in macro variables

Explain how an increase in interest rates initiated by the Federal Reserve affects:

  Statement related to labor and wage theory

Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..

  Hire nora jones to respond to customer inquiries

To best serve customers interested in buying cars over Internet, Smart Motors, hire Nora Jones to respond to customer inquiries.

  Compute the total cost of providing this insured service

Compute the total cost of providing this insured service to the plan before and after the change in coverage.

  Total economic profit and drawing market supply

Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?

  Assume if the inflation rate is this still acceptable

Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.

  Find out the income elasticity of demand

Find out  the income elasticity of demand. Elucidate whether gas is a normal or inferior product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd