Going back to the prior two problems which of these alternatives is better for the company? The original method, the modification suggested in problem 8, or the modification in problem 9? Why?Discuss

Please take sales up to $630,000 and down to $570,000 (up by 5% and down by 5%) and record the new net present value numbers.

Returning to the original numbers, please take disposition value up to $525,000 and down to $475,000 (up by 5% and down by 5%) and record the new net present value numbers.

Returning to the original numbers, please take variable costs up for all years to 42% and down to 38% (up by 5% and down by 5%) and record the new net present value numbers.

Returning to the original numbers, please take fixed costs up for all years to $231,000 and down to $209,000 (up by 5% and down by 5%) and record the new net present value numbers.

Returning to the original numbers, please take the tax rate to up to 29.4% and down to 26.6% (up by 5% and down by 5%) and record the new net present value numbers.

Returning to the original numbers, please take the weighted average cost of capital for this project up to 10.5% and down to 9.5% (up by 5% and down by 5%) and record the new net present value numbers.

From the answer to the prior six problems using the resulting range of outcome after making the 5% changes to the variables, which variable has the greatest influence on the net present value of this project?

Please go back to the original spreadsheet numbers the original net present value is $72,591. Please run a net present value breakeven using this original data and record the net present value level of sales here ___________. Prior to beginning this project, the company can increase the initial outlay by $150,000. This additional upfront acquisition stage cost would lower the variable costs to 30% of sales and increase the disposition value to $550,000. What is the new net present value____________, and the new net present value breakeven level of sales___________, and would this be a good move for the company?

Please go back to the original spreadsheet numbers. As an alternative before beginning this project, the company can reduce the initial outlay by $300,000. This would increase the variable costs to 50% of sales and decrease the disposition value to $400,000. What is the new net present value____________, and the new net present value breakeven level of sales___________, and would this be a good move for the company?

Going back to the prior two problems which of these alternatives is better for the company? The original method, the modification suggested in problem 8, or the modification in problem 9? Why?