New Project Evaluation Assignment | Homework For You

1. You will decide on a new project with a 5-year life and following data;

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

• You expect sales as $10,000 in the first year of operation but the sales in subsequent years are uncertain. Estimated sales growth is assumed to be normally distributed with a mean of 3% and a standard deviation of 2%. Costs of goods Sold (COGS) each year are uncertain as well but are assumed to be a percentage of sales. COGS as a percentage of sales is assumed to be distributed normally with a mean of 40% and a standard deviation of 6%.Homework For You

• Fixed costs will be $3,300 per year.

• The project will require an initial investment in net working capital of $400. Beginning at year 1, NWC is 10% of sales. The entire NWC investment (across all years) will be recovered at the end of the project.

• To operate the project, a new piece of equipment must be purchased at a cost of $10,000. The equipment will be depreciated using straight line depreciation.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

• The equipment will have 0 salvage value by the end of the project.

• The cost of capital facing the firm is 10%.

• Tax rate is 25% Mean Std Dev Sales Growth 3% 2% COGS/Sales 40% 6% Fixed Cost $3,300 NWC as % of Sales 10% Tax Rate 25% Cost of Capital 10%

Tasks: a) Calculate the NPV of the project while capturing the uncertainty in sales and costs of goods sold.

b) Simulate the NPV 1000 times using a data table.

c) Calculate mean, standard deviation, min and max values for projected NPVs

d) Calculate the probability of positive NPV

Can you include formulas in excel? I don’t know what more information you would need because this is all the info we are given. Get Finance homework help today

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Excellent analysis.
Customer 459667, April 2nd, 2022
Psychology
Excellent work.
Customer 462359, March 30th, 2022
English 101
Creative!
Customer 460641, April 13th, 2022
Other
Good.
Customer 462635, June 14th, 2022
Criminal Justice
this is an excellent paper
Customer 454221, April 3rd, 2020
Critical Reading and Writing
Excellent responses. Be keen on Grammar.
Customer 460653, April 4th, 2022
Nursing
Thanks for the amazing PPT!!!!
Customer 454007, June 8th, 2020
SEO
Very nice content. I am glad you took the corrections to heart and made the changes. Commendable work.
Customer 463679, February 22nd, 2023
Business and administrative studies
Good calculations
Customer 462327, June 28th, 2022
Business and administrative studies
The paper met the expectation. Thanks!
Customer 463143, September 7th, 2022
Nursing
Thanks.
Customer 453939, May 29th, 2020
English 101
Good. However, always manually proofread,
Customer 460547, April 25th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat