# Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment?

Below is an Income and cash flow statements that management has approved. (If there are errors or Show more Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. Below is an Income and cash flow statements that management has approved. (If there are errors or oversights that is their problem not yours). Start each question from the original data. Cells F14:F22 contain the original values in case you need to get back to them. Show or explain how you obtained each answer. a Determine the unit price that would achieve a cash flow in year 6 of $500000 Determine the unit price that would achieve a cash flow in year 6 of $500000 Determine the unit price that would achieve a cash flow in year 6 of $500000 Determine the unit price that would achieve a cash flow in year 6 of $500000 Determine the unit price that would achieve a cash flow in year 6 of $500000 Determine the unit price that would achieve a cash flow in year 6 of $500000 b Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) Determine the sensitivity of the internal rate of return to a 10% 25% and 50% increase in investment? (start with original values) c Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Determine the expected present worth for the following data where Forecast 1 is the current values. (start with original values) Forecast 1 (current Values) Forecast 2 Forecast 3 cell Unit Price $35.99 $40.00 $35.00 C14 COGS each $12.50 $15.00 $11.50 C15 S.G. & A. $800000 $1000000 $900000 C16 Sales Quantity Forecast year 1 50000 40000 60000 D23 Probability 50% 30% 20% Original Values Unit Price $35.99 $35.99 COGS each $12.50 $12.50 S.G.& A. $800000 $800000 salvage $100000 in year 6 $100000 Income tax rate 35% 35% Capital Gains Tax rate 15% 15% Working capital no change no change MARR 15% 15% Investment $2000000 $2000000 Sales Quantity Forecast 50000 60000 72000 86400 103680 124416 Depreciation MACRS 5 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% Income Statement 0 1 2 3 4 5 6 Sales revenue $1799500 $2159400 $2591280 $3109536 $3731443 $4477732 Cost of goods sold ($625000) ($750000) ($900000) ($1080000) ($1296000) ($1555200) Gross Margin $1174500 $1409400 $1691280 $2029536 $2435443 $2922532 General Sales and Admin. ($800000) ($800000) ($800000) ($800000) ($800000) ($800000) Depreciation ($400000) ($640000) ($384000) ($230400) ($115200) ($57600) EBIT ($25500) ($30600) $507280 $999136 $1520243 $2064932 Income tax $8925 $10710 ($177548) ($349698) ($532085) ($722726) Net income ($16575) ($19890) $329732 $649438 $988158 $1342206 Cash Flow Statement Net Income ($16575) ($19890) $329732 $649438 $988158 $1342206 Add depreciation $400000 $640000 $384000 $230400 $115200 $57600 Investment (2000000) Change in Working Capital ($179950) ($35990) ($43188) ($51826) ($62191) ($74629) Salvage $100000 Tax on gain $15000 Cash flow ($2000000) $203475 $584120 $670544 $828013 $1041167 $1440177 Present Worth = IRR $673198 23.95% Show less