XYZ owns and operates sports facilities. The objective of its managers is to maximize shareholder value. The firm is evaluating the hoops project, which involves building a basketball court in a local mall. Which

assertion is true, based on the information given in the question and the following table on the project?

Base-case NPV (based on final estimates and expectations)

Value created if 50 or more inches of snow fall in winter (based on scenario analysis)

Value created if worst-case sales occur (based on sensitivity analysis)

Value created if best-case sales occur (based on sensitivity analysis)

Probability that project will create more than $0 of value (based on simulation analysis)

$15,800.00

$-53.300.00

$-87. 100.00

$27.600.00

11.99

O It is not clear whether XYZ should accept or reject the hoops project, because the information that is provided is contradictory with respect to answering the question

O XYZ should reject the hoops project

O XYZ should be indifferent between accepting and rejecting the hoops project

O It is not clear whether XYZ should accept or reject the hoops project, because the cost of capital is not given

O XYZ should accept the hoops project

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