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The most likely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error. Suppose
The most likely outcomes for a particular project are estimated as follows:
However, you recognize that some of these estimates are subject to error. Suppose that each variable may turn out to be either
higher or lower than the initial estimate. The project will last for years and requires an initial investment of $ million, which will
be depreciated straightline over the project life to a final value of zero. The firm's tax rate is and the required rate of return is
What is project NPV in the "best case" scenario, that is assuming all variables take on the best possible value? Round your answer to
the nearest whole dollar amount.
NPV in the "best case" scenario
What about the "worst case" scenario? Use the minus sign for negative values. Round your answer to the nearest whole dollar
amount.
NPV in the "worst case" scenario
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