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Changing the variable costs by 10% has a bigger impact on the NPV then changing the price of the mask by 10%. True False QUESTION

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Changing the variable costs by 10% has a bigger impact on the NPV then changing the price of the mask by 10%. True False QUESTION 31 Use the information given for part V; Scenario analysis. What is the expected NPV of this project? A B. $6.85M C. $4.5M D. $20M QUESTION 32 Use the information given for part V; Scenario analysis. What is the standard deviation of the NPVs of this project? A $21,6M B. $19.62M $22.08M D. $38.14M Part IV: Sensitivity Analysis Use this information to answer questions 26 -30. BearKat Enterprises has a WACC of 7.1% BearKat Enterprises wants you to do a sensitivity analysis where you increase the mask price by 10% and decrease it by 10%. Also see what happens when you increase the variable costs by 10% and decrease them by 10%. Part V: Scenario Analysis Use this information to answer questions 31- 34. Suppose BearKat Enterprises management team decides to do a scenario analysis. They want you to calculate the expected NPV, standard deviation, and coefficient of variation for a new project. (These are not the NPV's that you calculated earlier). They give you the following data: Best case has a 25% probability and has an NPV of S29 M. Base case has a 55% probability and has an NPV of $12M. . Worst case has a 20% probability and has an NPV of-$35M. 3

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