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Using the information from our previous project, and the results of your sensitivity analysis in Part 2 , use scenario analysis to help determine whether
Using the information from our previous project, and the results of your sensitivity analysis in Part use scenario analysis to help
determine whether our project is still a good one. Come up with different scenarios in which at least two of our inputs should vary
together and test the the effect on our outcome variable NPV should these variable scenarios ocour. One of the inputs should
be the variable you determined to be the most sensitive the other can be any other input that you think would sko vary
alongside the most sensitive if one of your economic scenario ocours. From the baseline use changes in steps of
steps up and steps down, for a matris Use a required return to caloulate the baseline NPV in each scenario how ever
you can choose the required return to be one of your scenario variablesl. Provide a brief explanation for why your scenario
makes sense above each scenario matris in other words, explain why these inputs should vary together Then use a hurdle rate
of to determine if this project is still a good one are the outcomes postive in of the cases? Everything should be done
in Ercel and should tie back to the actual values from part
The answers here can be hardooded. Meaning you can calculate the NPV which would result from each change and then type it
manually or copy and paste the value into the appropriate cell. However, this can also be done using a Data Table in Excel you
will likely need to add some extra tables here to make it workl. Should you choose to do so I will give extra oredit points tow ards
this assignment for a total of if you do both correctly
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