Principles of Corporate Finance
Principles of Corporate Finance
13th Edition
ISBN: 9781260465099
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 10, Problem 8PS

Scenario analysis What is the NPV of the electric scooter project under the following scenario?

Unit sales are 20% below expectations.

Unit price is 10% below expectations.

Unit variable cost remains at 50% of revenue.

Fixed costs increase by 5%.

Investment in plant and equipment and in working capital are unchanged.

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