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Q2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are
Q2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given at the following figure. Variables Worst case Market size 1,250,000 Expected Best case 1,500,000 1,750,000 0.30 0.33 0.25 650 675 695 Market share Unit price($) variable cost/unit ($) Fix cost/ per unit ($) 625 620 615 28 26 24 Considering a worst case, base case, and best case, calculate (at least for base case) the NPV and interpret the feasibility of investment
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