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The Bursar at Tain came up with new library project that requires an initial investment of $100 and has the following cash flow estimates (ignore

The Bursar at Tain came up with new library project that requires an initial investment of $100 and has the following cash flow estimates (ignore taxes):

Pessimistic Most Likely Optimistic

Revenues $15 $20 $25

Costs 8 8 8

Suppose the cash flows will last forever and the opportunity cost of capital is 10%. Conduct a sensitivity analysis of the projects NPV to variations in revenues. What is the NPV in the pessimistic scenario?

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