Question: do it in excle please Scenario Analysis Scenario analysis is used to determine the range of possible outcomes for a project. Typically, the base case,
Scenario Analysis Scenario analysis is used to determine the range of possible outcomes for a project. Typically, the base case, best (optimistic) case, and worst (pessimistic) case values are Unit sales: Price per unit Variable costs per unit: Fixed costs per year Base case 3,000 $ 2,000,000 $ 1,000,000 $ 1,940,000,000 Initial cost: Project life (years): Required return; Tax rate: $ 1,500,000,000 5 15% 21% 5 With these values, we need to calculate the base case, best case, and worst case NPVs and IRRs. First, we want to calculate the NPV and IRR with the base case projections, 6 7 Base Cose Income Statement Sales Variable costs Fixed costs Depreciation EBIT Taxes (21%) Net income OCF INPY
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