Question: Bloopers analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 30 % 25 % Revenues
Bloopers analysts have come up with the following revised estimates for its magnoosium mine:
| Range | ||||||||||||
| Pessimistic | Optimistic | |||||||||||
| Initial investment | + | 30 | % | 25 | % | |||||||
| Revenues | 15 | % | + | 20 | % | |||||||
| Variable costs | + | 15 | % | 20 | % | |||||||
| Fixed cost | + | 30 | % | 20 | % | |||||||
| Working capital | + | 30 | % | 50 | % | |||||||
Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in thousands rounded to the nearest whole dollar.)
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