Professional Documents
Culture Documents
The Relationship Bettwen NPV and Disco: NPV Sensitivity Analysis Data Section
The Relationship Bettwen NPV and Disco: NPV Sensitivity Analysis Data Section
The Relationship Bettwen NPV and Disco: NPV Sensitivity Analysis Data Section
DATA SECTION
Investment 2,000,000.00
Project life 15
Annual cashflow 300,000.00
Discount rate 10%
REPORT SECTION
Project NPV $281,823.85
The relationship bettwen
DATA - TABLE $281,823.85 $12.00
7.0%
7.5%
$10.00
8.0%
8.5%
9.0% $8.00
Discount rate
9.5%
10.0%
10.5% $6.00
11.0%
11.5%
$4.00
12.5%
13.0%
13.5% $2.00
$0.00
7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10
relationship bettwen NPV and Disco
Cost of Sales
103 65%
104 68%
105 70%
106 75%
107
108
109
110 Sensitivity of Net Income to Key Variables
111 (Applied to 2008 Income Statement Data)
112 70% 80% 90% 100% 110% 120%
113
114 Sales (118,681) (77,789) (36,897) 3,995 44,887 85,779
115
116 COGS 91,768 62,510 33,253 3,995 (25,263) (54,520)
117
118 Selling and Admin. 33,641 23,759 13,877 3,995 (5,887) (15,769)
119
120
121
122
123
124
125 150,000
126
127
128 100,000
129
130
Net income (000's)
131
50,000
132
133
134
135 0
70% 80% 90% 100% 110% 12
136
137
138 (50,000)
139
140
141 (100,000)
142
143
144
(150,000)
145
146
147
148
149
(150,000)
A B C D E F G H
150
I J K L M N
CE ANALYSIS
1 Requirements:
2 + Go to the Report section: the projecting part
for 2010 has been done for you (LUCKY FOR
3
YOU!!!).
4
5 + Insert formulas in yellow cells in the table
6 "Ratios for the projected 2010"
7 + Generate the two blue tables. What are the
8 possible inference that you can get from these
9 two what-if analyses?
10
11 +In the table "Sensitivity...” construct formulas
for cells C114, C116 and C118 and copy them
12 across. Instruction:
13 C114 =($E$35*C112)-($E$38+$E$39+$E$40+
14 $E$41)-$E$46-$E$49
15 C116 =$E$35-($E$38*C112+$E$39+$E$40+
16 $E$41)-$E$46-$E$49
17 C118 =$E$35-($E$38+$E$39*C112+$E$40+
18 $E$41)-$E$46-$E$49
19 + From the "Sensitivity..." table, produce a Line
20 Graph and conclude from the chart what
21 variable has the most effect on Net Income (it
22 is the variable with the steepest line)
23
24
25
26
27
28
29
30
Projected Sales
Increase31
5%
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
I J K L M N
49
50
51
52
53 Sales
Projected
Increase
54 5%
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
Sales Growth89Rates
90 10%
91
92
93
94
95
96
97
98
99
Sales Growth100Rates
I J K L M N
101 10%
102
103
104
105
106
107
108
109
110
111
112 130%
113
114 126,671
115
116 (83,778)
117
118 (25,651)
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
% 100%
135 110% 120% 130%
136
137 Sales
138
139 Row 115
140
COGS
141
142 Row 117
143
144 Selling and
145 Admin.
146
147
148
149
Selling and
Admin.
I J K L M N
150
G32: Projected Sales Increase 5%