Is the project still economically viable why or why not

Reference no: EM133369157

Case Study: read case study appendix 33-C. This case study shows a successful proposal. Given what is gone on with the pandemic a number of viable projects have struggled as a result. This assignment calls for you to recast the project given the following new criteria:
1. RX sales drop 15%
2. Cost of goods sold increase by 6.2%
3. Salaries are increased by 2%
4. GM drop by 3.2%
5. Cast a year 4 with a 10% decrease in all categories from year 3.
6. Interest is now 21000 a year
7. Provision for bad debts increases by 4.5%
8. Net Income drops by 5% for each year
9. Number of prescriptions per day increases by 2%
10. Bad Debt Percentage rises to 4%
11. Inflation Rates drop by .5%
12. Unexpected costs not currently accounted for each year $35,435

Question: You need to recast the statement and exhibits given the criteria listed above and answer the following questions.

1. Is the project still economically viable why or why not?
2. Is there any information that you think is missing? What do you think you need? Why?
3. What happens when projects are started and the parameters change because of outside factors? Do you stop, cancel or continue on when the financials change?

Reference no: EM133369157

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