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Hello can someone help me in this mcq question You calculate the following estimates of project cash flows (there are no taxes): Pessimistic Most Likely
Hello can someone help me in this mcq question
You calculate the following estimates of project cash flows (there are no taxes):
Pessimistic | Most Likely | Optimistic | |
Investment | 100 | 80 | 60 |
Revenues | 30 | 40 | 50 |
Costs | 20 | 15 | 10 |
The revenues and costs occur in perpetuity. The cost of capital is 8 percent. Conduct a sensitivity analysis of the projects NPV to variations in costs. (Answers appear in order: [Pessimistic, Most Likely, Optimistic].)
+170.00, +232.50, +295.00
-100.00, +500.00, +800.00
-90.00, -55.00, -20.00
-88.33, -50.00, -18.50
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