>> Finance Basics
Exercises - BubbaGum
For this problem, you are to complete the BubbaGum case we started in class. The case, influence diagram, and spreadsheet template are posted on Canvas.
a) Build Model. Referring to the case, influence diagram, and model template, complete the BubbaGum model. Make sure to use the modeling conventions we discussed. This includes range names, no battleship code, consistent formulas, etc.
b) Analysis. Compute the NPV of the BubbaGum opportunity. Should Bubba invest? Develop a couple of waterfall diagrams to support your recommendation. What if some assessments (inputs) changed? Would your recommendation change?