Question: Please solve this exercise (And please write down which formulas you used) You calculate the following estimates of project cash flows (there are no taxes):

Please solve this exercise (And please write down which formulas you used)

You calculate the following estimates of project cash flows (there are no taxes): Pessimistic Most Likely Investment 100 80 Revenues 30 40 Costs 20 15 The revenues and costs occur in perpetuity. The cost of capital is 25 percent. Conduct a sensitivity analysis of the project's NPV. What is the project NPV in case of the pessimistic change in revenues

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