17 c. Assume that you are confident about the estimates of all the variables that affect the cash flows 18 except unit sales. If product acceptance is poor, sales will be only 200,000 units a year, while 19 a strong consumer response will produce ales of 300,000 units. In either case, cash costs 20 will still amount to 65% of revenues. You believe that there is a 25% chance of poor acceptance, 21 a 25% chance of excellent acceptance, and a 50% chance of average acceptance (the base case). 22 23 (1) What is the worst-case NPV? The best-case NPV? WACC: 10% 24 Es We used this spreadsheet model to develop these scenarios: CONO NPV Case Worst Base Best Probability 25% 50% 25% 9 0