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Discuss the scenario for the following situations in what-if analysis* What happens if we can have better financing deal and thereby can reduce cost of

Discuss the scenario for the following situations in what-if analysis*

  1. What happens if we can have better financing deal and thereby can reduce cost of capital to 20% but cash flows are expected to be 70% and project cost comes down by 4%?
  2. What happens if the cost of capital goes up to 18%, cash flows will happen at 60% probability and the cost of project goes up by 9%?

You need not use the MS Excel what-if tool to answer this question.

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