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You calculate the following estimates of project cash flows: Pessimistic Most likely optimistic Investment 100 95 90 Revenue 30 40 50 Costs 18 20 25
You calculate the following estimates of project cash flows:
| Pessimistic | Most likely | optimistic | |
| Investment | 100 | 95 | 90 |
| Revenue | 30 | 40 | 50 |
| Costs | 18 | 20 | 25 |
The revenues and costs occur in perpetuity, as opposed to the initial investment. The cost of capital is 5%. What does a sensitivity analysis of NPV (without taxes) show? Show the calculation.
| Pessimistic | Most Likely | Optimistic | |
| NPV |
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