cash flows per assessed outcomes cash flows. Taxes are not considered as this is assumed to be a not-for-profit business entity.

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 (WACC) for your project is 8 percent. Conduct a sensitivity analysis of the project's NPV to variations in costs base on the 3 outcomes above, that is Pessimistic, Most Likely, and Optimistic.