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By doing some independent research and following the methodology of the consultant, you are able to create an informed worst case scenario. In the worst
By doing some independent research and following the methodology of the consultant, you are able to create an informed worst case scenario. In the worst case, equipment costs increase are $20,000, externalities are $1,000, units sold in year 1 are 12,000 , year 1 sales price is $1.89, and cost per unit is $0.45. Everything else is likely unaffected. Under this scenario, net cash flows would be negative for the first nine years and result in an MIRR of 25.42%. If the partners decide to go ahead with the project give an example of two decision point where the partners could decide to abandon or scale back the project if it looks like the worst case scenario is happening. Why would these be logical decision points? By doing some independent research and following the methodology of the consultant, you are able to create an informed worst case scenario. In the worst case, equipment costs increase are $20,000, externalities are $1,000, units sold in year 1 are 12,000 , year 1 sales price is $1.89, and cost per unit is $0.45. Everything else is likely unaffected. Under this scenario, net cash flows would be negative for the first nine years and result in an MIRR of 25.42%. If the partners decide to go ahead with the project give an example of two decision point where the partners could decide to abandon or scale back the project if it looks like the worst case scenario is happening. Why would these be logical decision points
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