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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!