# Contents - Excel by wanghonghx

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```									Problems

Problem 7-5
Problem 7-7
Problem 7-12
Problem 7-14
Problem 7-15
Scenario summary for
Problem 7-15
Problem 7-5

Castle View Games would like to invest in a division to develop software for video
games. To evaluate this decision, the firm first attempts to project the working capital
needs for this operation. Its chief financial officer has developed the following
estimates (in millions of dollars):

Year 1       Year 2        Year 3       Year 4
Cash                         6           12            15           15
Accounts receivable         21           22            24           24
Inventory                    5            7            10           12
Accounts payable            18           22            24           25

Assuming that Castle View currently does not have any working capital invested in
this division, calculate the cash flows associated with changes in working capital for
the first five years of this investment.

Year 1       Year 2       Year 3        Year 4
Cash                           6.00        12.00        15.00         15.00
Accounts receivable           21.00        22.00        24.00         24.00
Inventory                      5.00         7.00        10.00         12.00
Accounts payable              18.00        22.00        24.00         25.00
Net change in working
capital                       14.00        19.00        25.00         26.00
software for video
t the working capital
the following

Year 5
15
24
13
30

capital invested in
working capital for

Year 5
15.00
24.00
13.00
30.00

22.00
Problem 7-7

You are a manager at Percolated Fiber, which is considering expanding its operations in sy
boss comes into your office, drops a consultant’s report on your desk, and complains, “We
for this report, and I am not sure their analysis makes sense. Before we spend the \$25 milli
this project, look it over and give me your opinion.” You open the report and find the follo

Project Year
1              2
Sales revenue                              30,000          30,000
– Cost of good sold                        18,000          18,000
= Gross profit                             12,000          12,000
– General, sales, and
– Depreciation                             2,500           2,500
= Net operating income                     7,500           7,500
– Income tax                               2,625           2,625
= Net income                              4,875           4,875

All of the estimates in the report seem correct. You note that the consultants used straight-
equipment that will be purchased today (year 0), which is what the accounting department
that because the project will increase earnings by \$4.875 million per year for ten years, the
You think back to your halcyon days in finance class and realize there is more work to be

First, you note that the consultants have not factored in the fact that the project will require
upfront (year 0), which will be fully recovered in year 10. Next, you see they have attribut
administrative expenses to the project, but you know that \$1 million of this amount is over
the project is not accepted. Finally, you know that accounting earnings are not the right thi

a. Given the available information, what are the free cash flows in years 0 through 10
proposed project?
Year 0          Year 1
Cost of machine                          (\$25,000.00)
Change in net working capital            (\$10,000.00)
Sales revenue                                             30,000.00
Minus cost of goods sold                                  18,000.00
Equals gross profit                                      \$12,000.00
Minus General, sales and
occurred anyway                                           \$1,000.00
Minus Depreciation                                         2,500.00
Equals net operating income                               \$8,500.00
Minus income tax                                           2,975.00
Equals Net income                               \$0.00     \$5,525.00
Plus depreciation                                         \$2,500.00
Cost of machine plus change in
net working capital                      (\$35,000.00)         \$0.00
Equals cash flow                         (\$35,000.00)     \$8,025.00

b. If the cost of capital for this project is 14%, what is your estimate of the value of t
Cost of capital                              14.00%
NPV                                      (\$26,616.87)
panding its operations in synthetic fiber manufacturing. Your
desk, and complains, “We owe these consultants \$1 million
ore we spend the \$25 million on new equipment needed for
he report and find the following estimates (in millions of

Project Year
…              9            10
30,000        30,000
18,000        18,000
12,000        12,000

2,000         2,000
2,500         2,500
7,500         7,500
2,625         2,625
4,875         4,875

consultants used straight-line depreciation for the new
the accounting department recommended. The report concludes
n per year for ten years, the project is worth \$48.75 million.
e there is more work to be done!

that the project will require \$10 million in working capital
you see they have attributed \$2 million of selling, general and
llion of this amount is overhead that will be incurred even if
arnings are not the right thing to focus on!

flows in years 0 through 10 that should be used to evaluate the

Year 2       Year 3        Year 4        Year 5      Year 6   Year 7
30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00
\$12,000.00 \$12,000.00 \$12,000.00 \$12,000.00 \$12,000.00 \$12,000.00

2,000.00      2,000.00      2,000.00    2,000.00    2,000.00    2,000.00

\$1,000.00     \$1,000.00    \$1,000.00    \$1,000.00   \$1,000.00   \$1,000.00
2,500.00      2,500.00     2,500.00     2,500.00    2,500.00    2,500.00
\$8,500.00     \$8,500.00    \$8,500.00    \$8,500.00   \$8,500.00   \$8,500.00
2,975.00      2,975.00     2,975.00     2,975.00    2,975.00    2,975.00
\$5,525.00     \$5,525.00    \$5,525.00    \$5,525.00   \$5,525.00   \$5,525.00
\$2,500.00     \$2,500.00    \$2,500.00    \$2,500.00   \$2,500.00   \$2,500.00

\$0.00         \$0.00        \$0.00        \$0.00       \$0.00       \$0.00
\$8,025.00     \$8,025.00    \$8,025.00    \$8,025.00   \$8,025.00   \$8,025.00

r estimate of the value of the new project?
Year 8   Year 9    Year 10

\$10,000.00
30,000.00 30,000.00      30,000.00
18,000.00 18,000.00      18,000.00
\$12,000.00 \$12,000.00    \$12,000.00

2,000.00    2,000.00     2,000.00

\$1,000.00   \$1,000.00    \$1,000.00
2,500.00    2,500.00     2,500.00
\$8,500.00   \$8,500.00    \$8,500.00
2,975.00    2,975.00     2,975.00
\$5,525.00   \$5,525.00    \$5,525.00
\$2,500.00   \$2,500.00    \$2,500.00

\$0.00       \$0.00   \$10,000.00
\$8,025.00   \$8,025.00   \$18,025.00
Problem 7-12

One year ago, your company purchased a machine used in manufacturing for \$110,000.
available that offers many advantages; you can purchase it for \$150,000 today. It will b
over ten years and has no salvage value. You expect that the new machine will produce
operating expenses other than depreciation) of \$40,000 per year for the next ten years. T

Tax rate                              45.00%

Original cost of old machine      110,000.00

Year 0         Year 1        Year 2
Cost of new machine             (\$150,000.00)
Proceeds from sale of old
machine                        \$50,000.00
Tax consequence from sale of
old machine                   (\$22,500.00)
New Gross Margin                            40,000.00 40,000.00
Old Gross Margin                            20,000.00 20,000.00
Difference in Gross Margin                 \$20,000.00 \$20,000.00
New Depreciation                            15,000.00 15,000.00
Old Depreciation                            10,000.00 10,000.00
Difference in Depreciation                  \$5,000.00 \$5,000.00
Marginal gross income from
new machine                                \$15,000.00 \$15,000.00
Minus income tax                             6,750.00   6,750.00
Equals Net income                   \$0.00 \$8,250.00 \$8,250.00
Plus depreciation                           \$5,000.00 \$5,000.00
Equals cash flow             (\$122,500.00) \$13,250.00 \$13,250.00

Cost of capital                     10.00%
NPV                             (\$41,084.49)
Replace machine?               No
facturing for \$110,000. You have learned that a new machine is
150,000 today. It will be depreciated on a straight-line basis
w machine will produce a gross margin (revenues minus
for the next ten years. The current machine is expected to

Year 3       Year 4       Year 5        Year 6      Year 7   Year 8

40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
\$20,000.00 \$20,000.00 \$20,000.00 \$20,000.00 \$20,000.00 \$20,000.00
15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
\$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00

\$15,000.00 \$15,000.00 \$15,000.00 \$15,000.00 \$15,000.00 \$15,000.00
6,750.00   6,750.00   6,750.00   6,750.00   6,750.00   6,750.00
\$8,250.00 \$8,250.00 \$8,250.00 \$8,250.00 \$8,250.00 \$8,250.00
\$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00 \$5,000.00
\$13,250.00 \$13,250.00 \$13,250.00 \$13,250.00 \$13,250.00 \$13,250.00
Year 9     Year 10

40,000.00 40,000.00
20,000.00 20,000.00
\$20,000.00 \$20,000.00
15,000.00 15,000.00
10,000.00 10,000.00
\$5,000.00 \$5,000.00

\$15,000.00 \$15,000.00
6,750.00   6,750.00
\$8,250.00 \$8,250.00
\$5,000.00 \$5,000.00
\$13,250.00 \$13,250.00
Problem 7-13

Tax rate                   35.00%
Discount Rate               8.00%

Year               0
Rent Machine
Rent
FCF(rent)
NPV                                 (218,077.65)

Purchase Current Machine
Maintenance
Depreciation
Capital Expenditures                (150,000.00)
FCF(purchase current)               (150,000.00)
NPV                                 (198,183.28)

Maintenance
Other Costs                          (35,000.00)
Depreciation
Capital Expenditures                (250,000.00)
NPV                                 (229,478.14)
1             2             3             4             5

(50,000.00)   (50,000.00)   (50,000.00)   (50,000.00)   (50,000.00)
(32,500.00)   (32,500.00)   (32,500.00)   (32,500.00)   (32,500.00)

(20,000.00)   (20,000.00)   (20,000.00)   (20,000.00)   (20,000.00)
21,428.57     21,428.57     21,428.57     21,428.57     21,428.57

(5,500.00)    (5,500.00)    (5,500.00)    (5,500.00)    (5,500.00)

(15,000.00)   (15,000.00)   (15,000.00)   (15,000.00)   (15,000.00)
10,000.00     10,000.00     10,000.00     10,000.00     10,000.00
35,714.29     35,714.29     35,714.29     35,714.29     35,714.29

9,250.00      9,250.00      9,250.00      9,250.00      9,250.00
6             7           8            9           10

(50,000.00)   (50,000.00) (50,000.00) (50,000.00) (50,000.00)
(32,500.00)   (32,500.00) (32,500.00) (32,500.00) (32,500.00)

(20,000.00)   (20,000.00) (20,000.00) (20,000.00) (20,000.00)
21,428.57     21,428.57

(5,500.00)    (5,500.00) (13,000.00) (13,000.00) (13,000.00)

(15,000.00)   (15,000.00) (15,000.00) (15,000.00) (15,000.00)
10,000.00     10,000.00   10,000.00   10,000.00   10,000.00
35,714.29     35,714.29

9,250.00      9,250.00    (3,250.00)   (3,250.00)   (3,250.00)
Problem 7-14

Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will
manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive
research, it has prepared the following incremental free cash flow projections (in millions of dollars):

Year 0     Years 1-9     Year 10
Revenues                                              100.0         100.0
– Manufacturing expenses
(other than depreciation)                           -35.0        -35.0
– Marketing expenses                                   -10.0        -10.0
– Depreciation                                         -15.0        -15.0
= EBIT                                                  40.0         40.0
– Taxes (35%)                                          -14.0        -14.0
= Unlevered net income                                  26.0         26.0
+ Depreciation                                         + 15.0       + 15.0
– Additions to working capital                         – 5.0         – 5.0
– Capital expenditures                   – 150.0
+ Continuation value                                                + 12.0
= Free cash flow                         – 150.0        36.0         48.0

a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks?
b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular,
management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this
project if revenues are 10% higher than forecast? What is the NPV if revenues are 10% lower than forecast?
c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity
of its analysis to possible growth in revenues and operating expenses. Specifically, management would like to
assume that revenues, manufacturing expenses, and marketing expenses are as given in the table for year 1 and grow
by 2% per year every year starting in year 2. Management also plans to assume that the initial capital expenditures
(and therefore depreciation), additions to working capital, and continuation value remain as initially specified in the
table. What is the NPV of this project under these alternative assumptions? How does the NPV change if the
revenues and operating expenses grow by 5% per year rather than by 2%?
d. To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for
different discount rates. Create a graph, with the discount rate on the x-axis and the NPV on the y-axis, for discount
rates ranging from 5% to 30%. For what ranges of discount rates does the project have a
positive NPV?

Tax rate                                  35.00%

Year 0             Year 1       Year 2      Year 3     Year 4    Year 5     Year 6     Year 7    Year 8    Year 9    Year 10
Sales revenue                                          100.00       100.00     100.00     100.00    100.00     100.00     100.00    100.00    100.00     100.00
Manufacturing expenses other than
depreciation                                             35.00       35.00      35.00      35.00      35.00      35.00     35.00     35.00     35.00     35.00
Marketing expenses                                       10.00       10.00      10.00      10.00      10.00      10.00     10.00     10.00     10.00     10.00
Depreciation                                             15.00       15.00      15.00      15.00      15.00      15.00     15.00     15.00     15.00     15.00
Equals net operating income                             \$40.00      \$40.00     \$40.00     \$40.00     \$40.00     \$40.00    \$40.00    \$40.00    \$40.00    \$40.00
Minus income tax                                         14.00       14.00      14.00      14.00      14.00      14.00     14.00     14.00     14.00     14.00
Equals Unlevered Net income                             \$26.00      \$26.00     \$26.00     \$26.00     \$26.00     \$26.00    \$26.00    \$26.00    \$26.00    \$26.00
Plus depreciation                                        15.00       15.00      15.00      15.00      15.00      15.00     15.00     15.00     15.00     15.00
Additions to net working capital                         (5.00)      (5.00)     (5.00)     (5.00)     (5.00)     (5.00)    (5.00)    (5.00)    (5.00)    (5.00)
Capital Expenditures               (150.00)
Continuation value                                                                                                                                       12.00
Free cash flow                    (\$150.00)             \$36.00      \$36.00     \$36.00     \$36.00     \$36.00     \$36.00    \$36.00    \$36.00    \$36.00    \$48.00

a. Cost of capital                           12.00%
NPV                                        57.27
b. Possible variation in revenues           10.00%
NPV
Base case                                         57.27
Revenue in year 1 if higher            110.00     94.00
Revenue in year 1 if lower              90.00     20.55

c. Growth in revenues,
manufacturing and operating               2.00%
Tax rate                                 35.00%
Year 0    Year 1     Year 2     Year 3     Year 4    Year 5    Year 6    Year 7    Year 8    Year 9    Year 10
Sales revenue                                     100.00     102.00    104.04     106.12    108.24    110.41    112.62    114.87    117.17     119.51
Manufacturing expenses other than
depreciation                                       35.00      35.70      36.41     37.14     37.89     38.64     39.42     40.20     41.01     41.83
Marketing expenses                                 10.00      10.20      10.40     10.61     10.82     11.04     11.26     11.49     11.72     11.95
Depreciation                                       15.00      15.00      15.00     15.00     15.00     15.00     15.00     15.00     15.00     15.00
Equals net operating income                       \$40.00     \$41.10     \$42.22    \$43.37    \$44.53    \$45.72    \$46.94    \$48.18    \$49.44    \$50.73
Minus income tax                                   14.00      14.39      14.78     15.18     15.59     16.00     16.43     16.86     17.30     17.76
Equals Unlevered Net income                       \$26.00     \$26.72     \$27.44    \$28.19    \$28.95    \$29.72    \$30.51    \$31.32    \$32.14    \$32.97
Plus depreciation                                  15.00      15.00      15.00     15.00     15.00     15.00     15.00     15.00     15.00     15.00
Additions to net working capital                   (5.00)     (5.00)     (5.00)    (5.00)    (5.00)    (5.00)    (5.00)    (5.00)    (5.00)    (5.00)
Capital Expenditures               (150.00)
Continuation value                                                                                                                             12.00
Free cash flow                    (\$150.00)       \$36.00     \$36.72     \$37.44    \$38.19    \$38.95    \$39.72    \$40.51    \$41.32    \$42.14    \$54.97

Cost of capital                        12.00%
NPV                                     72.46

d.                         Discount Rate    NPV
Base Case                               57.27
5.00%   135.35                                                         NPV Profile
6.00%   121.66
7.00%   108.95
8.00%    97.12                          160.00
9.00%    86.10                          140.00
10.00%    75.83                          120.00
11.00%    66.24                          100.00
12.00%    57.27                           80.00
60.00
NPV

13.00%    48.88                                                                                                           NPV
14.00%    41.02                           40.00
15.00%    33.64                           20.00
16.00%    26.72                            0.00
17.00%    20.21                          (20.00)
0.00%          10.00%        20.00%          30.00%       40.00%
18.00%    14.08                          (40.00)
19.00%     8.31                          (60.00)
20.00%     2.87                                                         Discount Rate
21.00%    (2.27)
22.00%    (7.12)
23.00%   (11.71)
24.00%   (16.06)
25.00%   (20.17)
26.00%   (24.08)
27.00%   (27.78)
28.00%   (31.30)
29.00%   (34.65)
30.00%   (37.83)
Problem 7-15

Billingham Packaging is considering expanding its production capacity by purchasing
million. Unfortunately, installing this machine will take several months and will partia
feasibility study to analyze the decision to buy the XC-750, resulting in the following e

■ Marketing: Once the XC-750 is operating next year, the extra capacity is expe
will continue for the ten-year life of the machine.
■ Operations: The disruption caused by the installation will decrease sales by \$5
cost of goods for the products produced by the XC-750 is expected to be 70% o
increased inventory on hand of \$1 million during the life of the project.
■
Accounting: The XC-750 will be depreciated via the straight-line method over
from the new sales to be 15% of revenues and payables to be 10% of the cost o
a. Determine the incremental earnings from the purchase of the XC-750.
b. Determine the free cash flow from the purchase of the XC-750.
c. If the appropriate cost of capital for the expansion is 10%, compute the NPV o
d. While the expected new sales will be \$10 million per year from the expansion,
in the worst case? In the best case?
e. What is the break-even level of new sales from the expansion? What is the brea
f. Billingham could instead purchase the XC-900, which offers even greater capa
would not be useful in the first two years of operation, but would allow for add
the \$10 million expected for the XC-750) per year in those years would justify

Tax rate                              35.00%
Cost of goods as a % of sales         70.00%
First year sales value              10,000.00

Year 0        Year 1
Sales revenue                        (5,000.00)     10,000.00
Cost of goods sold                 (3,500.00)    (7,000.00)
Depreciation                                       (275.00)
Equals net operating income       (\$8,500.00)     \$725.00
Minus income tax                   (2,975.00)       253.75
a.   Equals Unlevered Net income        (5,525.00)       471.25
Plus depreciation                                   275.00
Capital Expenditures               (2,750.00)
Increased inventory                (1,000.00)
Increased receivables                 750.00     (2,250.00)
Increased payables                    350.00        350.00
b.   Free cash flow                     (8,175.00)    (1,153.75)
c.   Cost of capital                      10.00%
NPV                                (4,424.44)
d.   Sales revenue                                     NPV
Base case                                        (4,424.44)
High revenue                       12,000.00      3,851.56
Low revenue                         8,000.00    (12,700.44)
e.   Breakeven sales with original
assumptions                        11,069.22
Breakeven cost of goods sold with
original assumptions               (5,937.95)
Year 0      Year 1
f.   Sales revenue                      (5,000.00)   10,000.00
Cost of goods sold                 (3,500.00)   (7,000.00)
Depreciation                                      (400.00)
Equals net operating income       (\$8,500.00)    \$600.00
Minus income tax                   (2,975.00)      210.00
Equals Unlevered Net income        (5,525.00)      390.00
Plus depreciation                                  400.00
Capital Expenditures               (4,000.00)
Increased inventory                (1,000.00)
Increased receivables                 750.00     (2,250.00)
Increased payables                    350.00        350.00
Free cash flow                     (9,425.00)   (1,110.00)
Cost of capital                      10.00%
NPV                                (5,390.29)
Breakeven sales with more
expensive machine
Additional sales needed to break   11,302.63
even with more expensive
machine                             1,302.63
n capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is \$2.75
al months and will partially disrupt production. The firm has just completed a \$50,000
sulting in the following estimates:

he extra capacity is expected to generate \$10 million per year in additional sales, which

will decrease sales by \$5 million this year. As with Billingham’s existing products, the
0 is expected to be 70% of their sale price. The increased production will also require
ife of the project.
nal sales and administrative personnel at a cost of \$2 million per year.

traight-line method over the ten-year life of the machine. The firm expects receivables
s to be 10% of the cost of goods sold. Billingham’s marginal corporate tax rate is 35%.
of the XC-750.
XC-750.
0%, compute the NPV of the purchase.
year from the expansion, estimates range from \$8 million to \$12 million. What is the NPV

pansion? What is the break-even level for the cost of goods sold?
offers even greater capacity. The cost of the XC-900 is \$4 million. The extra capacity
but would allow for additional sales in years 3–10. What level of additional sales (above
hose years would justify purchasing the larger machine?

Year 2        Year 3        Year 4        Year 5        Year 6       Year 7
10,000.00     10,000.00     10,000.00     10,000.00     10,000.00    10,000.00
(7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)
(2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)
(275.00)     (275.00)     (275.00)     (275.00)     (275.00)     (275.00)
\$725.00      \$725.00      \$725.00      \$725.00      \$725.00      \$725.00
253.75       253.75       253.75       253.75       253.75       253.75
471.25       471.25       471.25       471.25       471.25       471.25
275.00       275.00       275.00       275.00       275.00       275.00

746.25       746.25       746.25       746.25       746.25       746.25

Year 2       Year 3       Year 4       Year 5       Year 6       Year 7
10,000.00    10,000.00    10,000.00    10,000.00    10,000.00    10,000.00
(7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)
(2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)
(400.00)     (400.00)     (400.00)     (400.00)     (400.00)     (400.00)
\$600.00      \$600.00      \$600.00      \$600.00      \$600.00      \$600.00
210.00       210.00       210.00       210.00       210.00       210.00
390.00       390.00       390.00       390.00       390.00       390.00
400.00       400.00       400.00       400.00       400.00       400.00
790.00   790.00   790.00   790.00   790.00   790.00
Year 8      Year 9     Year 10     Year 11
10,000.00   10,000.00   10,000.00   10,000.00
(7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)
(2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)
(275.00)     (275.00)     (275.00)     (275.00)
\$725.00      \$725.00      \$725.00      \$725.00
253.75       253.75       253.75       253.75
471.25       471.25       471.25       471.25
275.00       275.00       275.00       275.00

1,000.00
1,500.00
(700.00)
746.25       746.25       746.25      2,546.25

Year 8       Year 9      Year 10      Year 11
10,000.00    10,000.00    10,000.00    10,000.00
(7,000.00)   (7,000.00)   (7,000.00)   (7,000.00)
(2,000.00)   (2,000.00)   (2,000.00)   (2,000.00)
(400.00)     (400.00)     (400.00)     (400.00)
\$600.00      \$600.00      \$600.00      \$600.00
210.00       210.00       210.00       210.00
390.00       390.00       390.00       390.00
400.00       400.00       400.00       400.00

1,000.00
1,500.00
(700.00)
790.00   790.00   790.00   2,590.00
Scenario Summary
Current Values:        Breakeven Sales
Changing Cells:
Breakeven Revenues                        10,000.00              11,069.22
Breakeven COGS                            -7,000.00              -7,000.00
Part f Breakeven Sales                    10,000.00              10,000.00
Result Cells:
\$C\$20                                     -4,424.44                   0.00
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Breakeven Cost of Goods Sold   Part f Breakeven sales

10,000.00               10,000.00
-5,937.95               -7,000.00
10,000.00               11,302.63

0.00               -4,424.44

```
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