Project -
Estimate the project's annual free cash flow (FCF) for each of the next 20 years, as well as the initial cash flow.
In estimating the relevant cash flows, pay special attention to overhead allocation expense. Explain why this is a cash flow for the Winglet Project or why it is not.
Calculate the NPV and IRR of the Blended Winglet Project.
What is the breakeven for the project for: jet fuel cost and fuel savings in gallons?
What is the sensitivity of the project's NPV to changing assumptions?
What potential risks and benefits do you see that are not incorporated into the quantitative analysis?
What is the impact if the winglets have no salvage value?
Attachment:- Winglet Project.rar