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Using Excel, conduct a scenario analysis to evaluate the risk of the project. Assume that there is a 25% probability that best-case conditions, with each
Using Excel, conduct a scenario analysis to evaluate the risk of the project. Assume that there is a 25% probability that best-case conditions, with each of the variables (the unit sales, WACC, variable costs, sales price and non-variable costs ) discussed in question (b) being 20% better than its base-case value, will occur. There is a 25% probability of worst-case conditions, with the variables 20% worse than the base, and a 50% probability of base-case conditions. Fill in the blanks for NPV.
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