You calculate the following estimates of project cash flows:
The revenues and costs occur in perpetuity,as opposed to the initial investment.The cost of capital is 8%.What does a sensitivity analysis of NPV (without taxes)show? (Answers appear in order: [Pessimistic,Most Likely,Optimistic].)
A)25.00,+232.50,+440.00
B)-100.00,+500.00,+800.00
C)-90.00,-55.00,-20.00
D)-88.33,-50.00,-18.50

Question

You calculate the following estimates of project cash flows: 
The revenues and costs occur in perpetuity,as opposed to the initial investment.The cost of capital is 8%.What does a sensitivity analysis of NPV (without taxes)show? (Answers appear in order: [Pessimistic,Most Likely,Optimistic].)
A)25.00,+232.50,+440.00 
B)-100.00,+500.00,+800.00 
C)-90.00,-55.00,-20.00 
D)-88.33,-50.00,-18.50

Quizplus · Accepted Answer

The Answer of You calculate the following estimates of project cash flows: 
The revenues and costs occur in perpetuity,as opposed to the initial investment.The cost of capital is 8%.What does a sensitivity analysis of NPV (without taxes)show? (Answers appear in order: [Pessimistic,Most Likely,Optimistic].)
A)25.00,+232.50,+440.00 
B)-100.00,+500.00,+800.00 
C)-90.00,-55.00,-20.00 
D)-88.33,-50.00,-18.50

You Calculate the Following Estimates of Project Cash Flows