Scenario Analysis Annual Miles Percent City Price of Fuel Best Case 15,000 90% $ 5.00 Base Case 10,000 75% $ 3.25 Worst Case 3,000 50% $ 2.50 CFO C01 to 007 Best Case $ 3,825 Base Case $ 3,825 $1,057 422 Worst Case 3,825 $ 83 Discount Rate 6.5% NPV IRR Payback Profitability Index Best Case $ 5,797.14 19.9% 1.5 Base Case $ 2,314.47 -6.1% Worst Case $ 455.22 -32.0% 39.7 Sensitivity Analysis Change in NPV Annual Miles -1000 Percent City -5% Fuel Price-$1
Scenario Analysis Annual Miles Percent City Price of Fuel Best Case 15,000 90% $ 5.00 Base Case 10,000 75% $ 3.25 Worst Case 3,000 50% $ 2.50 CFO C01 to 007 Best Case $ 3,825 Base Case $ 3,825 $1,057 422 Worst Case 3,825 $ 83 Discount Rate 6.5% NPV IRR Payback Profitability Index Best Case $ 5,797.14 19.9% 1.5 Base Case $ 2,314.47 -6.1% Worst Case $ 455.22 -32.0% 39.7 Sensitivity Analysis Change in NPV Annual Miles -1000 Percent City -5% Fuel Price-$1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please solve for payback, profitability index, and the severity analysis section. Also please explain how and why

Transcribed Image Text:Scenario Analysis
Annual Miles
Percent City
Price of Fuel
Best Case
15,000
90% $
5.00
Base Case
10,000
75% $
3.25
Worst Case
3,000
50% $
2.50
CFO
C01 to 007
Best Case
$
3,825
Base Case
$
3,825
$1,057
422
Worst Case
3,825 $
83
Discount Rate
6.5%
NPV
IRR
Payback
Profitability Index
Best Case
$
5,797.14
19.9%
1.5
Base Case
$
2,314.47
-6.1%
Worst Case
$
455.22
-32.0%
39.7
Sensitivity Analysis
Change in NPV
Annual Miles -1000
Percent City -5%
Fuel Price-$1
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