Sensitivity Analysis

Given Data 1st year $300,000 0.05 0.6 $30,000 0.3 0.14 $25,000

sales revenue sales growth cost of good sold (of sales) advertising tax rate market rate lease payment

2nd year $315,000 0.05 0.6 $31,500 0.3 0.14 $25,000

3rd year $330,750 0.05 0.6 $33,075 0.3 0.14 $25,000

Cash Flow Estimation 0th year Operating activities: Revenue Cost of Good Sold Gross Profit Operating Expenses: Advertising Depreciations: Equipment Furniture & Fittings Income From Operation Non-operating Activities: Lease Payment Income Before Tax Tax Net Income Add Back Depreciations: Equipment Furniture & Fittings Sales of Assets Equipment Furniture & Fittings Purchase of Assets Equipment Furniture & Fittings Net Estimated Cash Flow PV of CFs NPV

($75,000) ($100,000) ($175,000) ($175,000) $47,934.41

1st year

2nd year

3rd year

$300,000 ($180,000) $120,000

$315,000 ($189,000) $126,000

$330,750 ($198,450) $132,300

($30,000)

($31,500)

($33,075)

($11,000) ($17,000) $62,000

($11,000) ($17,000) $66,500

($11,000) ($17,000) $71,225

($25,000) $37,000 ($11,100) $25,900

($25,000) $41,500 ($12,450) $29,050

($25,000) $46,225 ($13,868) $32,358

$11,000 $17,000

$11,000 $17,000

$11,000 $17,000

$53,900

$57,050

$60,358

$47,281

$43,898

$40,740

Sensitivity of NPV (Data Table)

Sales Growth

$47,934.41 Cost of Good Sold/Sales

Net Present Value

0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75

(0.05) $61,826.12 $52,615.59 $43,405.07 $34,194.54 $24,984.01 $15,773.49 $6,562.96 ($2,647.57)

0.00 $73,301.32 $64,090.79 $54,880.26 $45,669.74 $36,459.21 $27,248.69 $18,038.16 $8,827.63

4th year $347,288 0.05 0.6 $34,729 0.3 0.14 $25,000

4th year

5th year $364,652 0.05 0.6 $36,465 0.3 0.14 $25,000

5th year

$347,288 ($208,373) $138,915

$364,652 ($218,791) $145,861

($34,729)

($36,465)

($11,000) ($17,000) $76,186

($11,000) ($17,000) $81,396

($25,000) $51,186 ($15,356) $35,830

($25,000) $56,396 ($16,919) $39,477

$11,000 $17,000

$11,000 $17,000 $20,000 $15,000

$63,830

$102,477

$37,793

$53,223

Data Table) Sales Growth Rate 0.05 $84,776.52 $75,565.99 $66,355.46 $57,144.94 $47,934.41 $38,723.88 $29,513.36 $20,302.83

0.10 $96,251.72 $87,041.19 $77,830.66 $68,620.14 $59,409.61 $50,199.08 $40,988.56 $31,778.03

0.15 $107,726.91 $98,516.39 $89,305.86 $80,095.34 $70,884.81 $61,674.28 $52,463.76 $43,253.23