Otobai’s staff (see Section 10-2) has come up with the following revised estimates for the electric scooter project:

Pessimistic Expected Optimistic Market size .8 million 1.0 million 1.2 million Market share .04 .1 .16 Unit price ¥300,000 ¥375,000 ¥400,000 Unit variable cost ¥350,000 ¥300,000 ¥275,000 Fixed cost ¥5 billion ¥3 billion ¥1 billion Conduct a sensitivity analysis using the “live” spreadsheets (available at www.mhhe.com/

bma ). What are the principal uncertainties in the project?

AppendixLO1