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QUESTION 16 Your company is considering a project with an initial outlay of $1,000 in year zero and the following cash flows over the next
QUESTION 16 Your company is considering a project with an initial outlay of $1,000 in year zero and the following cash flows over the next 4 years: year cash 1 2000 2 3000 3 4000 4 5000 Assuming the cost of capital is 11%: Use Scenario Manager to calculate Expected NPV, given the following three scenarios and their probabilities of occurrence: Scenario Cost of capital Probability Best case scenario 8% 25% Most likely case Scenario 11% 55% Worst case scenario 15% 20% 9,468.16 9,455.09 8,865.25 10,270.35 None of the above
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