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Basic scenario analysis Prime Paints is in the process of evaluating two mutually exclusive additions to its processing capacity. The firm's financial analysts have developed

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Basic scenario analysis Prime Paints is in the process of evaluating two mutually exclusive additions to its processing capacity. The firm's financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows associated with each project. These estimates are shown in the following table Project A Project B Initial investment (CF) $12.700 $12,700 Outcome Annual cash inflows (CF) Pessimistic $830 $1 Most likely 1,630 1,630 Optimistic 2 450 1.770 a. Determine the range of annual cash inflows for each of the two projects. b. Assume that the firm's cost of capital is 99% and that both projects have 15-year lives. Construct a table showing the NPVs for each project for each of the a. The range of annual cash inflows for project A is 50. (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer 5 parts Clear All Check Answer remaining

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