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    Corporate Finance Study Set 5
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    Exam 10: Project Analysis
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    How Much Could NPV Be Affected by a Worst-Case Scenario
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How Much Could NPV Be Affected by a Worst-Case Scenario

Question 41

Question 41

Multiple Choice

How much could NPV be affected by a worst-case scenario of 25% reduction from the $3 million in expected annual cash flows on a 5-year project with 10% cost of capital?


A) $2,843,090
B) $3,750,000
C) $4,578,825
D) $6,155,274

Correct Answer:

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