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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 $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given at the following figure. Considering a worst case, base case, and best case, calculate (at least for base case) the NPV and interpret the feasibility of investment. Variables Worst case Expected Best case Market size 1,250.000 1,500,000 1,750,000 Market share 0.25 0.30 0.33 Unit price(s) 650 675 695 variable cost/unit (s) 625 620 615 Fix cost per unit ($) 28 26 24 22
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