Sensitivity and Scenario Analysis (1st was answered already, Answer all please) Graph part - 12% or 8%

Complete the missing information in Tovah's Report: 6.85 million, 6.17 million, 0.93 million, or 2.06 million 9.33,, 9.30, 10.68, or 10.17 1.03, -0.66, -0.83, or -0.46 14,46%, 25.46%, 31.21% or 26.43%

3. Sensitivity and scenario analysis Different techniques of project risk analysis involve different input variables and assumptions. The procedure in which a set of key elements affecting the expected value are changed to study the effect on the expected value is called scenario analysis Tovah is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her company is considering investing in. Her risk analysis report includes the sensitivity curve shown on the graph. NPV (Millions of dollars Base Case NPV Base Case Price 18 24 30 CHANGES IN SELLING PRICE (Percent) This curve implies that the project is very sensitive to changes in the price of the product. The project's NPV is likely to become negative if the price for which the product can be sold decreases by Along with the sensitivity analysis, Tovah is including a scenario analysis for the project in her report, giving the probability of the project generating a negative NPV. Her report includes the following information about the scenario analysis: Data collected Probability Data for z Probability 0.03 0.06 0.09 NPV (Pj) outcome 0.4 0.3336 0.3228 0.3121 Pessimistic $5.62 million 0.35 0.6 0.2643 0.2546 0.2451 Most likely $7.94 million 0.30 0.8 0.2033 0.1949 0.1867 optimistic $16.45 million 0.35 1.0 0.1515 0.1446 0.1379 Complete the missing information in Tovah's report: The expected net present value of the project is Standard deviation of the net present value (the NPV of the project is likely to vary by million Assuming that probability distribution is normal, the value of z is Thus, the project has a chance to generate an NPV of less than $0