We want to know if the project has a positive or negative NPV. Also, in 500 words or less, explain t


Question Description:

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We want to know if the project has a positive or negative NPV. Also, in 500 words or less, explain t 1 answer below » Over lunch, you and Lester meet to discuss your next assignment. “The board of directors has been working on the cost and benefits of various
expansion options,” he says. “We have developed the numbers for one scenario in
this spreadsheet, and we want you to review it,” he says handing it
to you. “So you’re looking for me to use present value analysis to discount the cash
flows,” you say. “Should I include the calculations for net income, operating
cash flows, free cash flows, and the present value cash flows and net present
value (NPV) in the spreadsheet?” “Yes,” he says. “We want to View complete question » Over lunch, you and Lester meet to discuss your next assignment. “The board of directors has been working on the cost and benefits of various
expansion options,” he says. “We have developed the numbers for one scenario in
this spreadsheet, and we want you to review it,” he says handing it
to you. “So you’re looking for me to use present value analysis to discount the cash
flows,” you say. “Should I include the calculations for net income, operating
cash flows, free cash flows, and the present value cash flows and net present
value (NPV) in the spreadsheet?” “Yes,” he says. “We want to know if the project has a positive or negative
NPV. Also, in 500 words or less, explain the implications for AutoEdge and its
shareholders if there is a positive NPV or, conversely, if there is a negative
NPV.” “This will be interesting,” you say. “Good,” he says. “Oh, and one more thing. In addition to considering the NPV
value, we want to know what kind of economic assumptions you think the board
should consider. Articulate the economic and political risks with the strategy,
and list options to overcome them. How will this decision affect the share price
and the value of the company? In light of all this information, would you
support the option for expansion abroad or relocate back to the United States?
Include an explanation of your response, as well.” “I’ll get right on it,” you say. View less » Mar 16 2014 05:59 AM

Answer

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