You have decided to open a microbrewery selling university-themed beers as one of your product...

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You have decided to open a microbrewery selling university-themed beers as one of your product lines. You need to conduct a breakeven analysis of sales and price. You know your fixed costs but based on your marketing plan you are not sure of pricing and sales. Your company MARR is 5%, and fixed costs include an initial capital investment of $250,000 with fixed annual expenses of $100,000. Use a 5-year planning horizon and assume that these expenses will not grow with inflation. a. Draw the cash flow diagram. b. Populate the following table and plot the NPW results in a meaningful plot. (Make sure you label your axis, and your plot should contain three curves.) c. Make a pricing recommendation as a function of sales. You would like to make a minimum of $100,000 for your work on this project.

Komalavalli · Accepted Answer

Sheet1
	MARR	5%
	Initial Capital Investment	Fixed annual expenses
	250000	100,000			350000
		a		b
	Year	cash flow		NPW
	1	150,000		($70,733.50)
	2	50,000		($221,889.22)
	3	-50,000		($79,689.02)
	4	-150,000		($209,156.68)
	5	-250,000		($131,519.

You have decided to open a microbrewery selling university-themed beers as one of your product lines. You need to conduct a breakeven analysis of sales and price. You know your fixed costs but based...

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