Blue Corn Manufacturing Ltd is in the business of automobile and other ancillary services. The company wants to start its subsidiary business in China as an expansion plan for assembling the auto part.
For the purpose of this coursework, you are required to do the following:
1. Calculate the Discounted Cash Flows for 10-years and derive the Net Present Value using the uncertain input variables.
2. Perform a single simulation of 10,000 iterations for the NPV model and determine the probability of getting a negative NPV at 95% Confidence Interval .
3. Perform sensitivity analysis for the NPV output to determine the variable with the largest impact on NPV using the following:
a) Change in Output.
b) Regression Coefficient.
c) Correlation Coefficient.
d) Contribution to Variance.
Write a Report to your COO to communicate the findings from your analyses. The report should describe the purpose and result of your analyses
