I have a project where I have calculated most of the finances and I can provide them but need help with the part below(file also attached with full instructions). Also need a written part for Capital Structure Estimation, but calculations are complete.
Using the WACC obtained from in Step (4) as the discount rate for this project, apply capital budgeting analysis techniques (NPV, IRR, MIRR, PI, Payback, Discounted Payback) to analyze the new project.
– Perform a sensitivity analysis for the effects of key variables (e.g., sales growth rate, cost of capital, unit costs, sales price) on the estimated NPV or IRR in order to demonstrate the sensitivity of the model. The Scenario analysis of several variables simultaneously is encouraged (but not required). A PDF document named Sensitivity Analysis in Excel is provided in this learning module. The article introduces the Data Table method that you can use for performing sensitivity analysis in Excel.
– Discuss whether the project should be taken and summarize your report.