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What is the Investment Decision Analysis regarding Base case,Optimistic Case, Pessimistic regarding NPV, IRR, Payback period. Base Case NET CASH FLOW -20900000 10877720 13555320 14940120

image text in transcribedimage text in transcribedimage text in transcribedWhat is the Investment Decision Analysis regarding Base case,Optimistic Case, Pessimistic regarding NPV, IRR, Payback period.

Base Case NET CASH FLOW -20900000 10877720 13555320 14940120 13404320 12396240 12301240 12143490 10589850 10033500 9868500
CUMULATIVE NET CASH FLOW -20900000 -10022280 3533040 18473160 31877480 44273720 56574960 68718450 79308300 89341800 99210300 103380300
Payback Period 1.74 Years
Present value of Net Cash Flow -20900000 9541859 10430375 10084148 7936422 6438201 5604256 4852962 3712331 3085336 2661914.623
Net Present Value $ 43,447,805.53
Internal Rate of Return 59%
Optimistic Case NET CASH FLOW -20000000 11534720 15544920 17208840 15493670 14370690 14261440 14080028 12339038 11744625 11554875
CUMULATIVE NET CASH FLOW -20000000 -8465280 7079640 24288480 39782150 54152840 68414280 82494308 94833345 1.07E+08 1.18E+08 122532345
Payback Period 1.54 Years
Present value of Net Cash Flow -20000000 10118175 11961308 11615470 9173485 7463669 6497297 5626874 4325524 3611521 3116803.84
Net Present Value $ 53,510,126.35
Internal Rate of Return 69%
Pessimistic Case NET CASH FLOW -20000000 8420720 11565720 12671400 11314970 10421790 10341040 10206953 8840663 8322375 8182125
CUMULATIVE NET CASH FLOW -20000000 -11579280 -13560 12657840 23972810 34394600 44735640 54942593 63783255 72105630 80287755 84228255
Payback Period 2 Years
Present value of Net Cash Flow -20000000 7386596 8899443 8552827 6699359 5412734 4711215 4079049 3099137 2559152 2207025.406
Net Present Value $ 33,606,537.33
InternalRate of Return 51%
as one thing the folks at Creative Products Corporation (CPC knew well, it was how to come up with useful and unique products in lower and profit margins shrinking due to severe price competition, the firm's engineers had been pushed hard to develop a prototype of a useful. the midst of economic adversity. With current year revenues consideribl and hopefully highly profitable, "unique" product. Last month, the design team unveiled a fully tested, prototype of their latest innovation, a remote- controlled lawn mower, the "Lawn Robot." Surveys of retailers and customers conducted by the marketing depart- ment indicated that demand would be excellent, provided the price was lower than a riding lawn mower. The testing and development phases took almost three years and the final product passed all safety hazard tests witn flying colors. After the unveiling, the product was exhibited at various hone Before being given the "go ahead" to go into full-scale producion Vice President Committee (CIC), which was chaired D) io shows nationwide and received rave reviews. Full production started, however, because there had been a change in CEOs, ai CEO was highly conservative. had not yet new of study the Lawn Rob to the Capital Investment Committee (CIC), which was chani esign team had to present a detailed feasibility st of Finance, Bill Burton. As was typ taking of this type, th estimates with sufficient documentation to substa urton. As was tvpical in a major on. As was typical in a major und e proposal had to include detailed cost an as one thing the folks at Creative Products Corporation (CPC knew well, it was how to come up with useful and unique products in lower and profit margins shrinking due to severe price competition, the firm's engineers had been pushed hard to develop a prototype of a useful. the midst of economic adversity. With current year revenues consideribl and hopefully highly profitable, "unique" product. Last month, the design team unveiled a fully tested, prototype of their latest innovation, a remote- controlled lawn mower, the "Lawn Robot." Surveys of retailers and customers conducted by the marketing depart- ment indicated that demand would be excellent, provided the price was lower than a riding lawn mower. The testing and development phases took almost three years and the final product passed all safety hazard tests witn flying colors. After the unveiling, the product was exhibited at various hone Before being given the "go ahead" to go into full-scale producion Vice President Committee (CIC), which was chaired D) io shows nationwide and received rave reviews. Full production started, however, because there had been a change in CEOs, ai CEO was highly conservative. had not yet new of study the Lawn Rob to the Capital Investment Committee (CIC), which was chani esign team had to present a detailed feasibility st of Finance, Bill Burton. As was typ taking of this type, th estimates with sufficient documentation to substa urton. As was tvpical in a major on. As was typical in a major und e proposal had to include detailed cost an

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