On the basis of the above analysis, state the option which is the more favorable financially. Discuss the benefits and limitations of the investigation.

• Gregory
• December 15, 2021

Study Block 7:

From the Project 2 data file for your store pick the worksheet with your potential new department and the future options for both options will be there. Use the cost data and the cash flow template provided to produce a forecast of the total quarterly net cash flow associated with the foodhall to March 2024. Then use the replacement option data on the same template to set up a cash flow model for the new department.

Determine the net present value of the quarterly net cash flow over the 8 quarters.

Self-Managed study:

1. On the basis of the above analysis, state the option which is the more favorable financially. Discuss the benefits and limitations of the investigation.
2. Conduct Sensitivity Analysis by changing, one at a time, some of the data given identify which figures are critical to your decision. In the report, you should discuss the reliability of the decision. Use sensitivity analysis to provide the evidence for your comments.