When examining the change in NPV using scenario analysis,increasing sales by 10%,reducing operating costs by 10%,reducing lost sales by 10%,reducing selling and admin costs by 10%,and reducing working capital by 10% would probably represent which type of scenario?

Question

Quizplus · Accepted Answer

These changes represent a best case scenario as they all result in an increase in the project's cash inflows or a decrease in cash outflows, ultimately leading to a higher NPV.

When Examining the Change in NPV Using Scenario Analysis,increasing Sales