8. Scenario analysis (S10.1) Recalculate the NPV of the electric scooter project in a scenario where the

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8. Scenario analysis (S10.1) Recalculate the NPV of the electric scooter project in a scenario where the outcome is as follows:

a. Unit sales are 20% below expectations, and

b. Unit price is 10% below expectations, and

c. Unit variable cost remains at 50% of revenue, and

d. Fixed costs increase by 5%, and

e. Investment in plant and equipment and in working capital are unchanged.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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