11. Otobais staff (see Section 10-2) has come up with the following revised estimates for the electric

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11. 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?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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