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6. A project has an initial investment of 100. You have come up with the following estimates of the project's cash flows (there are no

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6. A project has an initial investment of 100. You have come up with the following estimates of the project's cash flows (there are no taxes): Pessimistic 15 10 Most Likely Optimistic 2025 Revenues Costs R5 Suppose the cash flows are perpetuities and the cost of capital is 10 percent. Conduct a sensitivity analysis of the project's NPV to variations in revenues. (Answers appear in order: (Pessimistic, Most Likely, Optimistic).) 6. A project has an initial investment of 100. You have come up with the following estimates of the project's cash flows (there are no taxes): Pessimistic 15 10 Most Likely Optimistic 2025 Revenues Costs R5 Suppose the cash flows are perpetuities and the cost of capital is 10 percent. Conduct a sensitivity analysis of the project's NPV to variations in revenues. (Answers appear in order: (Pessimistic, Most Likely, Optimistic).)

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