Roderick Electric Scooter, Inc., staff has come up with the following estimates for the electric scooter project: (SEE BELOW PHOTO)

Conduct sensitivity analysis. What are the principal uncertainties in the project? Assume an initial investment of $16 million to be depreciated over a period of 10 years to a salvage value of zero. Corporate Tax rate is 34%. Assume a cost of capital of 10%.

Calculate the weighted average cost of capital for Carla Computer Company. The book value of Carlas outstanding debt is $10 million. Currently, the debt is selling in the market at 110 percent of its book value and is priced to yield 12 percent. The one million outstanding shares of Carlas stock are selling for $25 per share. The required rate of return on Carla stock is 20 percent. The tax rate is 34 percent.

3. Roderick Electric Scooter, Inc, staff has come up with the following estimates for the electric scooter project: Market size Market share Unit price Unit variable cost Fixed cost Pessimistic 2.5 million 0.4 $300 $350 $5 million Expected 3.0 million 0.1 $375 $300 $3 million Optimistic 3.2 million 0.16 $400 $275 $1 milliorn onduct sensitivity analusis What are the nrincinal uncertainties in the nroiect? Assume