Question: Answer the following question using the data from the previous question: b. (10 points) Suppose figures for Soundscape's sales units, price, variable cost, fixed costs
Answer the following question using the data from the previous question:
b. (10 points) Suppose figures for Soundscape's sales units, price, variable cost, fixed costs and initial investment are may turn out to be either 15% higher or 15% lower than the initial estimates. Other things are thought to remain at the expected level. Compute the revised estimates for (i) sales units, (ii) price, (iii) variable cost, (iv) fixed costs and (v) initial investment from year 0 to year 3 under the best and worst case scenarios. (Note: You dont have to recalculate the projects NPV and IRR.)
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