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Case A: A company just paid $10 million for a project feasibility study. If the company goes ahead with the project, it must immediately spend

Case A: A company just paid $10 million for a project feasibility study. If the company goes ahead with the project, it must immediately spend another $100 million now, and then spend $20 million in one year. In two years, it will receive $80 million, and in three years it will receive $90 million. If the cost of capital for the project is 11%, what is the project's:

a. NPV

b. IRR

Show how you arrive at the answers.

Case B: Klott Health encounters significant uncertainty with its sales volume and price in its primary product. The firm uses scenario analysis in order to determine an expected NPV, which it then uses in its budget. The worst case, expected case, and best case scenarios and probabilities are provided in the table below. What is Klotts's:

Worst Case: probability = 0.3; unit sales volume = 6,000; sales price $3,600; NPV = -$6,000.

Expected Case: probability = 0.5; unit sales volume = 10,000; sales price = $4,200; NPV = $13,000.

Best Case: probability = 0.2; unit sales volume = 13,000; sales price = $4,400; NPV = $28,000.

a. What is Klott's expected NPV?

Please Show how you arrive at the answers.

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