Questions: Using a spreadsheet, estimate initial outlay, annual incremental ca

Questions:

Using a spreadsheet, estimate initial outlay, annual incremental cash flows and terminal cash flow for Sneaker 2013 and Persistence projects. Calculate NPV, IRR, payback period and discounted payback period for each Project. For your analysis, show the assumptions of the project evaluation (including changes in working capital and depreciation details)
In this part, your analysis and projections should be very clear with explicit assumptions.
Using all your calculations, answer the following questions in a paragraph. (30 pts.)
a) Which Project do you think is more risky? How do you think you should incorporate differences in risk into your analysis?
b) Based on the calculated payback period, discounted payback period, NPV and IRR for each Project, which Project looks better for New Balance shareholders? Why?
c) What is your final recommendation to Rodriquez? Explain.
Case solution report format (10 pts.):Your report must be in Word format and must include a cover page (Write the names of the team members on the cover page).
Your report should be written in professional format. (Use titles, subtitles, page numbers, table numbers, table titles and proper business language.)
The report should include your analysis of the project evaluation and your answers to the questions above at the minimum.
Do not break tables you transfer from Excel spreadsheet. All tables should be numbered and titled. Use footnotes for brief explanations if necessary.
There is no page limit, however a I do not expect a report being longer than 3 pages, excluding cover page.