$141$

$142$ Now conduct a scenario analysis. Assume that there is a $25\%$ probability that best$-$case conditions, with each of the variables discussed in Part b being $20\%$ better than its base$-$case value, will occur. There is a $25\%$ probability of worst$-$case conditions, with the variables $20\%$ worse than base, and a $50\%$ probability of base$-$case conditions. Note: You do not need to calculate the $20\%$ better

or $20\%$ worse $-$ those values are already given below. You need to run the scenario manager and input the values provided.

If the project appears to be more or less risky than an average project, find its risk$-$adjusted NPV$,$ IRR, and payback.