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Berbice Inc. has a new project, and you were recruitment to perform their sensitivity analysis based on the estimates of done by their engineering department
Berbice Inc. has a new project, and you were recruitment to perform their sensitivity analysis based on the estimates of done by their engineering department (there are no taxes):
Pessimistic Most Likely Optimistic
Investment $80 $80 $80
Revenues 40 40 40
Costs 20 15 10
The revenues and costs occur in perpetuity. The cost of capital is 8%. What is the NPV of the project in the optimistic permutation?
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