a.Design a spreadsheet model to assess this project. Your spreadsheet should be designed in a way that allows variables to be easily changed in order to facilitate sensitivity analysis. Using this model, find the net present value, the internal rate of return and the payback period in years and months. (20 marks)
b.What is your recommendation? Explain your answer. (5 marks)
c.Using the ‘goal seek’ function in Excel, find what the revenue growth would need to be for you to change your recommendation in part (b). Take a screenshot of the goal seek answer and insert the image into your TMA Word document. (2 marks)
d.Insert a data table into your spreadsheet, showing the impact on the net present value of varying percentages of lost Waffle Basic sales and revenue growth. You should include a range of lost sales from 15 to 25% and revenue growth from 1.5 to 2.5%. (4 marks)
e.Explain, using your own words, why net present value is generally considered to be a better appraisal test than the internal rate of return. (9 marks)