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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 pessimistic permutation?
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