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3. (30% Marks) The investors were concerned about with the net revenues and the investment life in new process. The following three scenarios were developed
3. (30% Marks) The investors were concerned about with the net revenues and the investment life in new process. The following three scenarios were developed for the desired rate of return of 15% after taxes for the 2 variables of net revenues and investment life. The investment life values were changed to 3, 5, and 7 years as the project is risky. Project Challenge Data Pessimistic Scenarios Optimistic Most-Likely (O) (ML) 40 Capital Investment (Million $ Units) Investment Life (years) Net Annual Revenues (Million $ Units) 21 (a) Determine the present worth of the three scenarios. (b) Which of the variables you consider to be most important for this
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