Question
Please, I need detail with numbers and answers for this question for a better understanding Assume that Sidney Johnson is confident of her estimates of
Please, I need detail with numbers and answers for this question for a better understanding
Assume that Sidney Johnson is confident of her estimates of all the variables that affect the projects cash flows except unit sales and sales price: If product acceptance is poor, unit sales would be only 800 units a year and the unit price would only be $160; a strong consumer response would produce sales of 1,200 units and a unit price of $240. Sidney believes that there is a 25% chance of poor acceptance, a 25% chance of excellent acceptance, and a 50% chance of average acceptance (the base case).
Use the worst-, base-, and best-case NPVs and probabilities of occurrence to find the projects expected NPV, as well as the NPVs standard deviation and coefficient of variation.
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