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  3. 2. abc corp. is planning an investment of $100.000

2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life...

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Finance

2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given at the following figure.

Considering different market condition as a worst case, base case and best case, calculate (at least for base case) the NPV and interpret the feasibility of the investment.

Variables

Worst case

Expected

Best case

Market size

1.000.000

1.250.000

1.500.000

Market share

0,20

0,25

0,30

Unit price($)

650

675

695

variable cost/unit ($)

625

620

615

Fix cost/ per unit ($)

28

26

24

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