Question
You calculate the following estimates of a project cash flow (there are no taxes) pessimistic Most likely optimistic investment 90 90 90 revenue 55 55
You calculate the following estimates of a project cash flow (there are no taxes)
pessimistic Most likely optimistic
investment 90 90 90
revenue 55 55 55
cost 25 20 15
The revenue and cost occur in perpetuity. The cost of capital is 8%. Conduct a sensitivity analysis of the project's NPV to variations in cost. Give you answers in order of Pessimistic, most likely, optimistic
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
