A tax-free company is evaluating a new machinery that is expected to produce an annual cash flow of $4 million for 5 years. The machine costs $10 million. However, as the following table shows, there is some uncertainty both about future cash flow and about the economic life of the new machinery: Pessimistic Expected Optimistic Annual cash flow $3M $4M $5M Economic life 4 years 5 years 6 years A sensitivity analysis is conducted using a discount rate of 10 percent and the following results are obtained: NPV Pessimistic Expected Optimistic Annual cash flow Economic life Which of the following net present values is a correct result from the sensitivity analysis? B B A tax-free company is evaluating a new machinery that is expected to produce an annual cash flow of $4 million for 5 years. The machine costs $10 million. However, as the following table shows, there is some uncertainty both about future cash flow and about the economic life of the new machinery: Pessimistic Expected Optimistic Annual cash flow $3M $4M $5M Economic life 4 years 5 years 6 years D A sensitivity analysis is conducted using a discount rate of 10 percent and the following results are obtained: NPV Pessimistic Expected Optimistic a Annual cash flow Economic life Which of the following net present values is a correct result from the sensitivity analysis? (a) A = $5.163M A=-$0.490M C = $5.849M C=$8.954M (e) C = $11.776M