Using an excel spreadsheet, please build a 5 year incremental cash flow projection for the contemplated shower enclosure project. Based on the projections and the other provided information, please estimate the following:
What is the project’s expected NPV?
What is the project’s expected IRR? (2 decimal places)
What is the project’s expected profitability index? (2 decimal places)
Part 2. In the same spreadsheet, please create a 5 x 5 sensitivity analysis/table to show how sensitive NPV is to price and variable cost assumptions. Please vary each row and column assumption in increments of $300. (hint; if your table is not functioning be sure to check excel settings to make sure you have enabled iterative calculations and that you are in manual mode)
What is the project’s expected irr?
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