Fill in the blank: Scenario analysis is made up of several Correct Michael Scenarios Michael We have created various scenarios each with a forecast for our expected sales volume, revenues, expenses, risks, etc. At a high level, here are how each of the scenarios looks like. Calculate NPV for Scenario A. Use the information provided on the right. Round to the nearest whole number. Submit Enter a response then click Submit below $0 Scenarios Area 1.1 Scenario Comparison (S) Scenario A Scenario B Scenario C Initial Investment 2,000,000 2,000,000 2,000,000 Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Annual Net Income 545, 100 426,995 1,644,385 Annual Cash Flow 656,890 -493, 005 2,564,385 NPV -3,777,184 7,244,095
Fill in the blank: Scenario analysis is made up of several Correct Michael Scenarios Michael We have created various scenarios each with a forecast for our expected sales volume, revenues, expenses, risks, etc. At a high level, here are how each of the scenarios looks like. Calculate NPV for Scenario A. Use the information provided on the right. Round to the nearest whole number. Submit Enter a response then click Submit below $0 Scenarios Area 1.1 Scenario Comparison (S) Scenario A Scenario B Scenario C Initial Investment 2,000,000 2,000,000 2,000,000 Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Annual Net Income 545, 100 426,995 1,644,385 Annual Cash Flow 656,890 -493, 005 2,564,385 NPV -3,777,184 7,244,095
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Mc
Graw
Hill
Risk and Capital Budgeting
AA
Fill in the blank: Scenario analysis is made up of
several
Correct
Michael
Scenarios
Michael
We have created various scenarios each with
a forecast for our expected sales volume,
revenues, expenses, risks, etc.
At a high level, here are how each of the
scenarios looks like.
Calculate NPV for Scenario A.
Use the information provided on the right. Round to
the nearest whole number.
Submit
Enter a response then click Submit below
$0
Scenarios
Area 1.1
Scenario Comparison ($)
Scenario A
Scenario B
Scenario C
Initial
Investment
2,000,000
2,000,000
2,000,000
Expected interest rate: 12%
Forecasting period: 5 years
PV annuity factor: 3.6048
Annual Net
Income
545, 100
426,995
1,644,385
Annual Cash
Flow
656,890
-493, 005
2,564,385
NPV
-3,777, 184
7,244,095
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