analysis 5. (6pts) Download the accompanying Excel file. Perform both a scenario analysis and a...
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analysis 5. (6pts) Download the accompanying Excel file. Perform both a scenario analysis and a sensitivity analysis using the provided information. Answer the following questions using your results a. What is NPV in the base case scenario? What does the b. What is NPV in the worst case scenario? The best case c. Assume the probability of each scenario is equal. What d. Provide a graph evaluating NPV in the base case with e. Provide a graph evaluating NPV in the base case with f. What is the breakeven starting price in the base case? base case represent? scenario? is the average NPV? different starting prices different starting yields. Breakeven starting yield? Cost (per unit) nitial Investment Required rate of return S4.00 $ l ,500 00 lignore depreciation 1 0.00% Base case Worst case Best case Starting price (per unit) Starting yield (quantity $10.00 100 $7.00 70 $15.00 150 Yield Net Base case Year 0 Year 1 Year 2 Year 3 Price Revenuce Cost $10.00 S9.00 S8.00 110? Yield Net Worst case Year 0 Year 1 Year 2 Year 3 Price Revenue Cost 7.00 S6.00 $5.00 0 70 ? 77? 84.7? Price Yield Revenue Cost Net Best case Year 0 Year 1 ear Year 3 0 $15.00 $14.00 $13.00 150 ? 165? 181.5? Average NPV Base case NPV Worst case NPV Best case NPV
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