Business Finance Homework Help

I’m working on a finance discussion question and need an explanation to help me understand better.

Assignment Questions:

1.What are the relevant cash flows? In this capital budgeting analysis of their low-price, low-calorie soda project. how shale we treat:

the consultant’s market study

the potential rental value of the unoccupied annex

the interest charges

working capital

2.Should we consider the erosion of the existing product – regular soda – in the analysis?

3.Calculate the project’s NPV, IRR, payback period, discounted payback period, and profitability index.

4.Perform sensitivity analysis on sales volume, price, direct labor, materials, and energy cost. What do you observe?

5.What are the benefits and risks of undertaking the project?

6.Should Bebida Sol undertake the project?