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Assume that Sidney Johnson is confident of her estimates of all the variables that affect the projects cash flows except unit sales and sales price:

Assume that Sidney Johnson is confident of her estimates of all the variables that affect the projects cash flows except unit sales and sales price: If product acceptance is poor, unit sales would be only 800 units a year and the unit price would only be $160; a strong consumer response would produce sales of 1,200 units and a unit price of $240. Sidney believes that there is a 25% chance of poor acceptance, a 25% chance of excellent acceptance, and a 50% chance of average acceptance (the base case). (1)What is scenario analysis? (2)What is the worst-case NPV? The best-case NPV? (3)Use the worst-, base-, and best-case NPVs and probabilities of occurrence to find the projects expected NPV, as well as the NPVs standard deviation and coefficient of variation.

PLESE HELP HOW TO FIND NPV FROR DIFFERENT CASES

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