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Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and that Blooper's inventories were 20% rather than 15% of next year's expenses. Use the below Blooper spreadsheet. See SPREADSHEET 9.1 in the eBook for the baseline project evaluation and resulting NPV assuming 15% inventory expense SPREADSHEET 9.1 Financial projections for Blooper's Magnoosium mine (dollar values in thousands) 19.500 3. 900 22.080 Inputs Initial Investment Salvage value Initial revenue Initial expenses Inflation rate Discount rate Acct receiv. as % of sales Inven. as of expenses Tax rate 13, 800 Spreadsheet Name Investment Salvage Initial rev Intial_exp Inflation Disc_rate AR Inv_pet Tax_rate 0.05 0.12 1/4 0.2 0.21 a. Would project NPV be higher or lower than that in the Blooper spreadsheet? O Lower Higher b. Calculate Blooper's working capital in each year of its project. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Year Working Capital 5.948 9,009 0 1 2. 3 4 5 6 c. What is the change in project NPV? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) The NPV from $4,223 to Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and that Blooper's inventories were 20% rather than 15% of next year's expenses. Use the below Blooper spreadsheet. See SPREADSHEET 9.1 in the eBook for the baseline project evaluation and resulting NPV assuming 15% inventory expense SPREADSHEET 9.1 Financial projections for Blooper's Magnoosium mine (dollar values in thousands) 19.500 3. 900 22.080 Inputs Initial Investment Salvage value Initial revenue Initial expenses Inflation rate Discount rate Acct receiv. as % of sales Inven. as of expenses Tax rate 13, 800 Spreadsheet Name Investment Salvage Initial rev Intial_exp Inflation Disc_rate AR Inv_pet Tax_rate 0.05 0.12 1/4 0.2 0.21 a. Would project NPV be higher or lower than that in the Blooper spreadsheet? O Lower Higher b. Calculate Blooper's working capital in each year of its project. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Year Working Capital 5.948 9,009 0 1 2. 3 4 5 6 c. What is the change in project NPV? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) The NPV from $4,223 to

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