Question
Perform a Scenario Analysis using the following information: . 1st Yrs Sales Sales Growth Sales Price Var. Cost Prob.of Occuring Best Case 25000 25% 3..90
Perform a Scenario Analysis using the following information: .
| 1st Yrs Sales | Sales Growth | Sales Price | Var. Cost | Prob.of Occuring | |
| Best Case | 25000 | 25% | 3..90 | 1.45 | 25% |
| Base Case | 20000 | 0% | 3.00 | 2.10 | 55% |
| Worst Case | 15000 | -20% | 2.25 | 2.75 | 20% |
From the Scenario Analysis, use the probabilities to find the Expected NPV and the Standard Deviation of the NPV. From the Scenario Analysis, what is the probability that the actual NPV will be less than zero?
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
