Scenarios Area 1.1 Ultimately what does a forecast scenario consist of? Michael Estimated NPV based on projected cash flows Correct Fill in the blank: Scenario analysis is made up of several Michael Scenarios Scenario Comparison ($) Initial Annual Annual Investm Net Cash ent Income Flow NPV Scenari 2,000,0 545, 100 678,325 o A Scenari 2,000,0 00 -493,00 -3,777, 426,995 o B 00 5 184 Scenari 2,000,0 1,644,3 2,564,3 7,244,0 00 85 85 95 Correct о с Michael We have created various scenarios each with a forecast for our expected sales volume, revenues, expenses, risks, etc. At a high level, here are how each of the scenarios looks like. Calculate NPV for Scenario A. Use the information provided on the right. Round to the nearest whole number. Materials on the right have been updated >> Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Enter a response then click Submit below 0 Submit Materials
Scenarios Area 1.1 Ultimately what does a forecast scenario consist of? Michael Estimated NPV based on projected cash flows Correct Fill in the blank: Scenario analysis is made up of several Michael Scenarios Scenario Comparison ($) Initial Annual Annual Investm Net Cash ent Income Flow NPV Scenari 2,000,0 545, 100 678,325 o A Scenari 2,000,0 00 -493,00 -3,777, 426,995 o B 00 5 184 Scenari 2,000,0 1,644,3 2,564,3 7,244,0 00 85 85 95 Correct о с 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. Materials on the right have been updated >> Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Enter a response then click Submit below 0 Submit Materials
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
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

Transcribed Image Text:Scenarios
Area 1.1
Ultimately what does a forecast scenario
consist of?
Michael
Estimated NPV based on projected
cash flows
Correct
Fill in the blank: Scenario analysis is made
up of several
Michael
Scenarios
Scenario Comparison ($)
Initial Annual Annual
Investm Net
Cash
ent Income Flow
NPV
Scenari 2,000,0
545, 100 678,325
o A
Scenari 2,000,0
00
-493,00 -3,777,
426,995
o B
00
5
184
Scenari 2,000,0 1,644,3 2,564,3 7,244,0
00
85
85
95
Correct
о с
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.
Materials on the right have been updated >>
Expected interest rate: 12%
Forecasting period: 5 years
PV annuity factor: 3.6048
Enter a response then click Submit below
0
Submit
Materials
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