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
Correct Answer:
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