Risk Analysis in Capital Budgeting Case

Risk Analysis in Capital Budgeting Case - CASE15M Student...

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CASE15M Student Version 04/25/10 ROBERT MONTOYA, INC. (B) Risk Analysis in Capital Budgeting This case focuses on capital budgeting risk assessment using the red wine project that was introduced in Case 14, Robert Montoya (A). The model develops incremental cash flow estimates, and then calculates NPV, IRR, MIRR, and Payback for the red wine project. This model differs from the Case 14 model in that this one includes three data tables which can greatly facilitate sensitivity analysis. Also, this model contains a graph which can be used to plot the sensitivity diagrams. You can change the data tables, then use them to change the graph. Press CTRL A to view the graph. If you are using the student version of the model, some of the cells have been blanked out. Before using the model, it is necessary to fill in the empty cells with the appropriate formulas. Once this is done, the model is ready for use. ============ =========== ============ =========== ============ ============ INPUT DATA: KEY OUTPUT: Initial Investment: Price $2,200,000 NPV $0 Freight $80,000 IRR 0.0% Installation $120,000 MIRR -100.0% Change in NWC $100,000 Payback 4.0 Operating Flows and Inflation Rates: Sales volume 100,000 Year 0 sales price $40.00
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This note was uploaded on 04/24/2010 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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Risk Analysis in Capital Budgeting Case - CASE15M Student...

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