Solved

You Calculate the Following Estimates of Project Cash Flows (There

Question 25

Multiple Choice

You calculate the following estimates of project cash flows (there are no taxes) :
You calculate the following estimates of project cash flows (there are no taxes) :   The revenues and costs occur in perpetuity. The cost of capital is 8 percent. Conduct a sensitivity analysis of the project's NPV to variations in costs. (Answers appear in order: [Pessimistic, Most Likely, Optimistic].)  A) +170.00, +232.50, +295.00 B) −100.00, +500.00, +800.00 C) −90.00, −55.00, −20.00 D) −88.33, −50.00, −18.50
The revenues and costs occur in perpetuity. The cost of capital is 8 percent. Conduct a sensitivity analysis of the project's NPV to variations in costs. (Answers appear in order: [Pessimistic, Most Likely, Optimistic].)


A) +170.00, +232.50, +295.00
B) −100.00, +500.00, +800.00
C) −90.00, −55.00, −20.00
D) −88.33, −50.00, −18.50

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions