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This is a retail company Scenario Analysis Scenario 1 Scenario 2 (Baseline) Scenario 3 1st Assumption 2nd Assumption Sales Growth through year 6 Cost of
This is a retail company
Scenario Analysis Scenario 1 Scenario 2 (Baseline) Scenario 3 1st Assumption 2nd Assumption Sales Growth through year 6 Cost of Goods Sold 5% 6% 7% NPV 71% 6,543 72% 6,145 73% 5,687 Scenario 4 8% 74% 5,167 Question: Which scenario generates the highest NPV? (fill in the blanks highlighted in yellow) Answer: Scenario 1 Question: Why are the assumptions you choose appropriate for your company? Answer: Scenario Analysis Scenario 1 Scenario 2 (Baseline) Scenario 3 1st Assumption 2nd Assumption Sales Growth through year 6 Cost of Goods Sold 5% 6% 7% NPV 71% 6,543 72% 6,145 73% 5,687 Scenario 4 8% 74% 5,167 Question: Which scenario generates the highest NPV? (fill in the blanks highlighted in yellow) Answer: Scenario 1 Question: Why are the assumptions you choose appropriate for your companyStep by Step Solution
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