MY INSTRUCTIONS
Financial Modeling (NBPS AND TAB A-C ARE IN ONE EXCEL FILE AND ONLY NEED TAB A-C calculated to the instruction below here. Goal seek and scenario analysis within excel May and is required.
Using the proposal model from the content for this week for NBPS (WITHIN THE ATTACHED EXCEL SHEET) to determine:
TAB A: the breakeven point of the 2011 Electronic Book Revenues (which affects all future revenues)
TAB B: the present worth of each of the following three scenarios prepared by Jack Rory and Ridley and
TAB C: The expected present worth of the proposal if all three forecasts are equally probable.
Discuss the implications of your results in a paragraph.
The Scenario analysis capability in Excel is recommended to accomplish this. If your computer/software has problems running a scenario analysis copy the spreadsheet into two additional tabs label the three scenario tabs as Jack Rory and Ridley and determine the results for each scenario using the following data respectively. The data below is already within TAB B.
Scenario
2011 Electronic Revenues
Electronic % increase
Printed % decrease
COGS % Printed
COGS % Electronic
Jack
$8000000
8%
4%
70%
40%
Rory
$14000000
12%
9%
60%
30%
Ridley
$12000000
10%
8%
65%
30%
Attachments: