Question: From Study Case Allied Food Products, please help with the following questions: i . 1 ) The expected cash flows, considering inflation ( in thousands
From Study Case Allied Food Products, please help with the following questions:
i The expected cash flows, considering inflation in thousands of dollars are given in Table IC Allieds WACC is Assume that you are confident about the estimates of all the variables that affect the cash flows except unit sales. If product acceptance is poor, sales would be only units a year, while a strong consumer response would produce sales of units. In either case, cash operating costs would still amount to of revenues. You believe that there is a chance of poor acceptance, a chance of excellent acceptance, and a chance of average acceptance the base case Provide numbers only if you are using a computer model. What is the worstcase NPV The bestcase NPV
i Use the worstcase, most likely case or basecase and bestcase NPVs with their probabilities of occurrence, to find the projects expected NPV standard deviation, and coefficient of variation.
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