Question
Perform scenario analysis on the NPV for the given projects under different scenarios. Scenario Project Initial Investment Cash Flow Year 1 Cash Flow Year 2
Perform scenario analysis on the NPV for the given projects under different scenarios.
Scenario | Project | Initial Investment | Cash Flow Year 1 | Cash Flow Year 2 | Cash Flow Year 3 | Discount Rate |
Best | S | $100,000 | $40,000 | $50,000 | $60,000 | 8% |
Worst | S | $100,000 | $20,000 | $30,000 | $40,000 | 8% |
Base | S | $100,000 | $30,000 | $40,000 | $50,000 | 8% |
What is the NPV for Project S under the best-case scenario?
What is the NPV for Project S under the worst-case scenario?
What is the NPV for Project S under the base-case scenario?
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
