Refer to the XYZ Company example in the chapter and the results in Panels A and B of Exhibit 12.7. On the basis of this information, management of the company has decided to delay the implementation of the project for 1 year. Those managers are now interested in knowing how sensitive this decision is with respect to the assumptions they've made regarding the basic analysis. Therefore, they have asked you to prepare some supplementary analyses regarding Panel B of Exhibit 12.7.

Required:

1. Holding everything else constant, what is the expected NPV of the decision if the probabilities for the three scenarios are as follows: high (20%), medium (47%), and low (33%)?

Holding everything else constant, what is the expected NPV of the decision if the probabilities for the three scenarios are as follows: high (20%), medium (47%), and low (33%)? (Enter your answers in millions. Do not round intermediate calculations. Round your final answers to 3 decimal places.) Required 2 > ILL Required 1 Required 2 Required 3 Holding everything else constant, what is the expected NPV of the decision if the probat follows: high (24%), medium (43%), and low (33%)? (Enter your answers in millions. [ Round your final answers to 3 decimal places.) Scenario NPV (@ t =0) High Medium Low Total Required 1 Required 2 Required 3 Prepare a 5 x 3 table containing the estimated NPV of the decision to delay for each col rate of interest (7%, 8%, 9%) and weighted-average cost of capital (10%, 11%, 12%, in your table would be the estimated NPV of the project if the risk-free rate of interest is capital is 10%. (Enter your answers in millions. Do not round intermediate calculations. places.) Risk-Free Rate 7% 8% 9% WACC 10% WACC 11% WACC 12% WACC 13% WACC 14%