Question: Decision Tree and Breakeven Sensitivity Analysis Reevaluate the Earthilizer decision tree analysis found in Table 3-7, Where the abandonment value is only $ 350,000. What

Decision Tree and Breakeven Sensitivity Analysis Reevaluate the Earthilizer decision tree analysis found in Table 3-7,

Where the abandonment value is only $ 350,000. What is the expected NPV of the project under these circumstances? What is the mini-mum abandonment value required to produce an expected NPV for the project of zero with the abandonment option? (Use the Goal Seek function to solve for the abandonment value that produces an expected NPV of zero.)

Prie per sai Market share (%) 5 4805 Growth rate in market siae he ginning inyer Usit sariable cont Fisad oon 1259 $9,000000 Cod of capital lavestmest in set working capital 500% ed the predicted chase in firt. EVWaue 7,000000 Project Analys Yeat Year 1 Year 2 Yeur 3 Year 5 7000 000 146 550000 154 1920 161.902.125 Variable coat Fited oost 127500,000 (133500)(183568,78 14759788) (154977 047 1,400000 0933375 1400000 NOt (net opensing incoe 958 750 NOPAT 1400000 CAPEX Lanc changv in NaC Free cah 7000 14.342 50 595260 365 481 973280 04,755 461 933 42499892485 6975.029 Net peuwat vale

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