Question: In this activity, you are tasked with presenting forecast scenario analysis to the board of directors at Warner Bros. as the company considers changing its

In this activity, you are tasked with presenting forecast scenario analysis to the board of directors at Warner Bros. as the company considers changing its business model.

You are tasked with presenting a forecast scenario analysis to the board

of directors at Bentleys Sorell Pty Ltd as the company considers changing

its business model. Scenario Comparison ($) Initial Investment Annual Net Income Annual

Cash NPV Flow Scenario A 2,000,000 545,100 675,000 Scenario B 2,000,000 Scenario

You are tasked with presenting a forecast scenario analysis to the board of directors at Bentleys Sorell Pty Ltd as the company considers changing its business model. Scenario Comparison ($) Initial Investment Annual Net Income Annual Cash NPV Flow Scenario A 2,000,000 545,100 675,000 Scenario B 2,000,000 Scenario C 2,000,000 426,995 1,644,385 -493,005 -3,777,184 2,564,385 7,244,095 Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Using the information provided, answer the following questions:

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Q41 Calculate Net Present Value NPV for Scenario A If the projected NPV cash flow is positive does this guarantee that the new company strategy will work Answer To calculate the Net Present Value NPV ... View full answer

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