Compute net cash flows for each party under several scenarios.

For example:

a. SCENARIO 1 (Very Pessimistic)—Licensee fails to get a single order.

b. SCENARIO 2 (Conservative Scenario)—Licensee gets one third market share in Peru for three years, no orders thereafter, and no orders in any other nation.

c. SCENARIO 3 (Optimistic Scenario)—Licensee gets one-third share in Peru for ten years and half again as much in business in other nations. LO.1