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Sneaker 2013

Due January 15, 2024 BEFORE the beginning of class

An excel file has been placed on D2L to assist you in determining the FCF and NPV for the Sneaker 2013
project.

1. Please calculate the NPV for Sneaker 2013 and upload your file into the D2L dropbox titled
Sneaker 2013. DO NOT use for MACRS for depreciation, assume the CCA rate will be 5% for the
building, and 20% for any equipment. Assume the building and equipment will be sold for their
respective UCC values at the end of t6.

2. Be prepared to answer the following in class on January 15.

What other factors might you want to take into account that are not captured in the NPV
analysis (i.e. quantitative and qualitative)? You should jot these factors down as bullet points
along with a few sentences to explain their relevance. Would any of these factors change your
answer to question 1? Whether you answer yes or no be prepared defend your answer using in
a few brief sentences.

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