Question
Pessimistic Most Likely Optimistic Investment 80 80 80 Revenues 40 40 40 Costs 20 15 10 The revenues and costs occur in perpetuity. The cost
Pessimistic Most Likely Optimistic
Investment 80 80 80
Revenues 40 40 40
Costs 20 15 10
The revenues and costs occur in perpetuity. The cost of capital (WACC) for your project is 8 percent. Conduct a sensitivity analysis of the project's NPV to variations in costs base on the 3 outcomes above, that is Pessimistic, Most Likely, and Optimistic.
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
