Risk Quantification. Environmental issues and new projects that will result in future growth in gross Profit.

Case 2 has the 25% and 50% probabilities of the gross profit increase being realized. please advocate a risk mitigation plan that avoids/prevents/deters the Case 1 scenario from coming to fruition and discuss the pursuit of creating an environment where Case 2.2 (3.7% growth of Gross Profit) is most achievable since it has the 50% likelihood (most bang for the buck).

The table below highlights the potential impact of the environmental issues and new projects to Swissgrid's cash ow. Changes to Cash Flow Cash Flow = Net Income + Depreciation and Amortization Table 3: Changes in Cashow "Year T2013 Net Income ! 96.6 Depreciation | 64.6 Amortizatio 24.1 2022 111.7 :2023 , 115.8 100 2 I 66.6 . 25.8 28.4 26.1 26.8 2?.1 n l Cash Flow 1 228.3 J 23.6.1]I ' 241.1 N Ili- [\\J h] Z2427 525L9 Year 2018 2019 2020 2021 2022 2023 Cash Flow 227.4 234.1 238.2 238.6 242.4 245.4 Cash Flow 228.3 236.0 241.1 242.7 247.7 251.9 (3.7% gross profit) Changes in gross profits Year 2018 2019 2020 2021 2022 2023 Gross 531.4 545.7 560.5 575.6 591.1 607.1 Profits Gross 550.5 587.7 623.2 663.1 705.6 750.7 Profits (3.7% increase in gross profit)Impact of the risk to the company value Terminal Value= Year 6 Cashflow (r-g) Due to a 3.7% growth in gross profit, the company value increases from 41,965.21 to 43,068.96 Additionally, the price per share increases from 133.22 to 136.73