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. Initial investment (CF) Outcome Pessimistic Most likely Optimistic Project A Project B $12,000 $12,000 Annual cash inflows (CF) $840 $1,570 1,690 1,690 2,440 1,750 a. Determine the range of annual cash inflows for each of the two projects. b. Assume that the firm's cost of capital is 9.5% and that both projects have 20-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 $ 1600. (Round to the nearest dollar.) The range of annual cash inflows for project B is $ 180. (Round to the nearest dollar.) b. Assume that the firm's cost of capital is 9.5% and that both projects have 20-year lives. Complete the NPV table below for project A: (Round to the nearest cent.) NPVs Outcome Project A Pessimistic $ Most likely Optimistic Range Complete the NPV table below for project B: (Round to the nearest cent.) NPVs Outcome Project B Pessimistic $ Most likely Optimistic Range $ c. Do parts (a) and (b) provide consistent views of the two projects? Explain. (Select the best answer below.) A. Although the "optimistic" outcome is identical for projects A and B, the NPV range varies considerably. B. Although the "most likely" outcome is identical for projects A and B, the NPV range varies considerably. C. Since the "most likely" outcome is identical for projects A and B, the NPV range is also identical. D. Although the "pessimistic" outcome is identical for projects A and B, the NPV range varies considerably