The people who propose projects have no vested interest in whether or not they are accepot Ohojest cash flows can be highly uncertain D Marketing managers are rarelly excessively optimistic. 13) Eoonomists at PHE LLC estimate a 20% probability of a recession next year, a 50% peiliny of n will be $20 million: if the economy is average, it will be $45 million and in case of a ragid expansionwil be average oconomy, and a 30% probability of a rapid expansion f there is a recession, the NPV of pridO $75 million. What is the expected NPV of the project? o $49 million D) S57.5 million 14) Enchanted Hearth expects to sell 1.200 wood pellet stoves in 2011 at an average price of $2400 cach per year. Forecast sales revenue for 2013 (2 years later) if both price and the number of units sold increse by A) $45 million B) S46.67 million believes that unit sales will grow between-5% and +5% per year and prices will rise or fall by as much % 5% per year. C) $3,492,720 D) S3,500,658 B) S3,175,200 A) $3,333,960 Use the following information to answer the following question(s). Destroya Extermination Services projects next year's sales of its new X-Ray termite inspection service 5,000 mspections priced at S175 cach. The variable costs per inspection are expected to be $87.50 Fixod cash costs are expected to be S90,000 and depreciation $110,000. The company's marginal tax rate is 34% Best Case Increase by 10% Increase by 10% Decrease by 10% Decrease by 10% Worst Case Decrease by 10% Decrease by 10 Increase by 10% Increase by 10% Base case Variable Quantity (Q) Price (P) Variable cost (VC) 5,000 $175 $87.5 $90,000 FC 15) What is the expected operating cash flow (OCF) for the base case? A) S237,500 B) S266,750 C) $383,240 D) S156,750 16) What is the expected operating cash flow (OCF) for the best case scenario? A) $330,000 B) $384,500 C) $414,400 D) $396,853 17) What is the expected operating cash flow (OCF) for the worst case scenario? A) S383,240 B) S153,973 C) S84,910 D) $43,972 18) For a line of snowblowers sold by Arctic Equipment, fixed costs, including depreciation of S1,000,000, total 34.MO0,000. The snowblowers sell for $800 cach. Variable costs of a snowblower are $500. Compule accounting break-even quantity. A) 3,000 B) 2,000 C) 8,000 D) 6,400 19) For a line of snowblowers sold by Arctic Equipment, fixed costs, including depreciation of $1,000,000, total $2,400,000. The snowblowers sell for $800 cach. Variable costs of a snowblower are $500. Compute cash break-even quantity A) 5,200 B) 2,400 C) 4,667 D) 5,433 20) Which of the following must be adjusted for the firm's tax rate when estimating the weighted average cost of capital WACC