spreadsheet 10.1 Blooper's analysts have come up with the following revised estimates for its magnoosium mine:RangeInitial investmentRevenuesVariable costsFixed costWorking capitalInitial investmentPessimistic Optimistic+45%RevenuesVariable costsFixed costsWorking capital- 15%+ 25%+ 20%+ 20%Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 andaccompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negativeamounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest wholedollar.)25%+ 25%- 25%- 25%30%PessimisticProject NPVExpectedOptimistic A. InputsInitial investment ($ thousands)Salvage value ($ thousands)Initial revenues ($ thousands)Variable costs (% of revenues)Initial fixed costs ($ thousands)Inflation rate (%)Discount rate (%)Receivables (% of sales)Inventory (% of next year's costs)Tax rate (%)B. Fixed assetsInvestments in fixed assetsSales of fixed assetsCash flow from fixed assetsC. Operating cash flowRevenuesVariable expensesFixed expensesDepreciationPretax profitTaxProfit after taxOperating cash flowD. Working capitalWorking capitalChange in working capitalCash flow from investment in working capitalE. Project valuationTotal project cash flowDiscount factorPV of cash flowNet present valueYear:10,0002,00015,00040.0%4,0005.0%12.0%16.7%15.0%21.0%010,000-10,0001,5001,500-1,500115,0006,0004,0002,0003,0006302,3704,3704,0752,575-2,5750.4081,7950.893215,750 16,5386,3006,6154,2004,4102,0002,0003,2503,5136837382,5684,5684,279204-2040.408-11,5004,3641.0000.797-11,500 1,603 3,4796,113.132,7754,7754,493214-2140.4084,5610.7123,246417,3646,9464,6312,0003,7887962,9934,9934,717225-2250.4084,7680.6363,030518,2337,2934,8622,0004,0788563,2215,2213,039-1,6791,6790.2506,9000.5673,91561,5801,5800-3,0393,0394,6190.5072,340

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Blooper's analysts have come up with the following revised estimates for its magh Range Initial investment Revenues Variable costs Fixed cost Working capital Pessimistic Optimistic +45% - 15% -25% + 25% 25% -25% 30% + 25% + 20% + 20% -

Blooper's analysts have come up with the following revised estimates for its magh Range Initial investment Revenues Variable costs Fixed cost Working capital Pessimistic Optimistic +45% - 15% -25% + 25% 25% -25% 30% + 25% + 20% + 20% -

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 1Q: a. Working capital; net working capital; net operating working capital b. Current asset usage...

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