Question
Pediatrics Partners is evaluating a project with the following net cash flows and probabilitites.... The Year 5 value includes salvage value. Pediatrics Partners corporate capital
Pediatrics Partners is evaluating a project with the following net cash flows and probabilitites.... The Year 5 value includes salvage value. Pediatrics Partners corporate capital of use is 12%. What is the projects expected NPV assuming average risk? What art the projects most likely, worse case, and best case NPV? What is the projects expected NPV on the basis of the scenario analysis?
| Year | Prob. =0.25 | Prob.=0.5 | Prob.=0.25 |
| 0 | ($75,000) | ($75,000) | ($75,000) |
| 1 | 15,000 | 20,000 | 30,000 |
| 2 | 15,000 | 20,000 | 30,000 |
| 3 | 15,000 | 20,000 | 30,000 |
| 4 | 15,000 | 20,000 | 30,000 |
| 5 | 20,000 | 30,000 | 40,000 |
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
