Prepare a spreadsheet cash flow analysis of the project

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Reference no: EM133223823

Question: Prepare a spreadsheet cash flow analysis of the project.

b. Calculate the project's NPV, IRR, and payback from the spreadsheet in part a.

c. Conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, number of units sold, the variable costs per unit, fixed costs and the cost of capital. Set these variables' values at 20% above and 20% below their base-case values. Include a graph in your analysis. d. Conduct a scenario analysis. Assume the following scenarios.

Scenario 1: Best-case condition the sales price increase by 10%, number of units sold 7,000 units, variable costs per unit and fixed cost increase 5% from the original basecase value.

Scenario 2: Worst-case condition, with increase in the variable and fixed cost by 25% and with no change in the unit sales and unit price from the base value.

Calculate the Expected NPV, the Standard Deviation of the NPV and the project's coefficient of variation? The best-case scenario and the base case each have a 40% probability while the worst case has a 30% probability. e. On the basis of your analysis, would you recommend that the project be accepted? What added advise and special attention would you give for the company with regard to the project

Reference no: EM133223823

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