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ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given
ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given at the following figure. Considering different market condition as a worst case, base case and best case, calculate (at least for base case) the NPV and interpret the feasibility of the investment.
Worst case Expected Best case Variables Market size Market share 1.000.000 1.250.000 1.500.000 0,20 0,25 0,30 Unit price($) 650 675 695 variable cost/unit ($) 625 620 615 Fix cost/ per unit ($) 28 26 24 Worst case Expected Best case Variables Market size Market share 1.000.000 1.250.000 1.500.000 0,20 0,25 0,30 Unit price($) 650 675 695 variable cost/unit ($) 625 620 615 Fix cost/ per unit ($) 28 26 24Step by Step Solution
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