Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how create a scenario analysis in excel with the following NPVs and Coefficient of Variation and standard deviation. NPV for Worst case was ($2,110,160) and

how create a scenario analysis in excel with the following NPVs and Coefficient of Variation and standard deviation. NPV for Worst case was ($2,110,160) and correct NPV for Best Case was +$4,751,163, NPV for Most likely is $723,782.02
image text in transcribed
image text in transcribed
3) From the solution file from Week 5 and using the final NPV values for the Best Case, Worst Case and Most Likely Case, Create a Scenario Anaysis of Expected NPV, Variance, Standard Deviation and Covariation Coefficient for this Project. Assume Best Case has a 20% probability, Most Likely Case a 60% Probabilty and Worst Case a 20% probability. Be sure to show your work in new worksheet by creating the appropriate excel table and calculations. 4) Assuming average risk is a CV of 1.5 do we need to adjust our cost of capital for this project? If so, do we adjust it up or down? Be sure to Expalin your answer on your scenario analysis tab 5) What management actions can you take to mitigate the volatility of your most sensitive variable, your least sensitive variable and the remaining variable. Ansswer this question on Scenario tab Total peajotod Visite Average en per Average Varie Cup V Toled Cast Puca Monthly Rental Conte Occupy the New Se Salvage Value of the quiet is de end of Year Corporate Tax Rate n Yew Prejected to by Yu 21 Notion with prayers in th e 31 Cow e s posted to rise of Fred Costs reported to care of pery Year their wirely in the 2 per yer her het them of year 1 The 71 Twi will depressed the t ter whole d Produd do a ys when we you comforward 4,125.000 4.2.35 1956.33.75 5.307.672,651 5.6.12.092.972 917.02.129 3145703 3.471,71.767 1513030 31471435 1545,714355 4,187,71425 4411.173285 515.714,286 4961, 1997 3161 001 Before Tas 5416 1055 535714 116214 111.914296 33 Cash for Told Y Cutie Casio 701 5714 -2.7971436 714 61 2.967512.134.874207236912.525 Pastack Pored 3) From the solution file from Week 5 and using the final NPV values for the Best Case, Worst Case and Most Likely Case, Create a Scenario Anaysis of Expected NPV, Variance, Standard Deviation and Covariation Coefficient for this Project. Assume Best Case has a 20% probability, Most Likely Case a 60% Probabilty and Worst Case a 20% probability. Be sure to show your work in new worksheet by creating the appropriate excel table and calculations. 4) Assuming average risk is a CV of 1.5 do we need to adjust our cost of capital for this project? If so, do we adjust it up or down? Be sure to Expalin your answer on your scenario analysis tab 5) What management actions can you take to mitigate the volatility of your most sensitive variable, your least sensitive variable and the remaining variable. Ansswer this question on Scenario tab Total peajotod Visite Average en per Average Varie Cup V Toled Cast Puca Monthly Rental Conte Occupy the New Se Salvage Value of the quiet is de end of Year Corporate Tax Rate n Yew Prejected to by Yu 21 Notion with prayers in th e 31 Cow e s posted to rise of Fred Costs reported to care of pery Year their wirely in the 2 per yer her het them of year 1 The 71 Twi will depressed the t ter whole d Produd do a ys when we you comforward 4,125.000 4.2.35 1956.33.75 5.307.672,651 5.6.12.092.972 917.02.129 3145703 3.471,71.767 1513030 31471435 1545,714355 4,187,71425 4411.173285 515.714,286 4961, 1997 3161 001 Before Tas 5416 1055 535714 116214 111.914296 33 Cash for Told Y Cutie Casio 701 5714 -2.7971436 714 61 2.967512.134.874207236912.525 Pastack Pored

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Currency Options In Financial Institutions

Authors: Yat-Fai Lam, Kin-Keung Lai

1st Edition

1138778052, 978-1138778054

More Books

Students also viewed these Finance questions