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Assignment 10: Financial Modeling

Used proposal spreadsheet in the attached workbook to do the following:

1.       Perform a sensitivity analysis on the “Sales annual % Increase With” for 20% through 40% in increments of 5%.

2.      Determine the MARR breakeven point (PW = 0) for the “Sales annual % Increase With”.  Do this using the Excel Goal Seek capability.

3.      Evaluate the following Pessimistic and Optimistic scenarios that were generated by outside consultants.  Note that the “Sales annual % Increase With” should be set back to 25% so that the “Current Values” scenario is accurate. 

4.      Consider the original estimates as the “Current Values” scenario.  The probability of the Current Values, Pessimistic, and Optimistic scenarios has been estimated at .50, .25, and .25 respectively.  What is the expected result of these three scenarios?

5.      Discuss the implications of the above results in a short paragraph.