Question: Bloopers analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment +40% 25% Revenues 25% +20% Variable
Bloopers analysts have come up with the following revised estimates for its magnoosium mine:
| Range | ||
|---|---|---|
| Pessimistic | Optimistic | |
| Initial investment | +40% | 25% |
| Revenues | 25% | +20% |
| Variable costs, percent of revenues | +20% | 20% |
| Fixed costs | +35% | 35% |
| Working capital, percent of expected value | +30% | 35% |
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.
Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.
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