Question: You are tasked with presenting a forecast scenario analysis to the board of directors at Bentleys Sorell Pty Ltd as the company considers changing


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

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

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 ($) Scenario A Scenario B Scenario C Initial Investment 04.1 2,000,000 2,000,000 2,000,000 Annual Net Income 545, 100 H-=- B I A- 426,995 1,644,385 Annual Cash Flow Expected interest rate: 12% Forecasting period: 5 years PV annuity factor: 3.6048 Using the information provided, answer the following questions: 675,000 -493,005 2,564,385 NPV 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? [5 marks) X. X . 16 -3,777,184 7,244,095 == Q4.2 Categorize the scenarios. And if the projected cash flow is positive in the base case, should the company take the risk of investing in creating its own streaming service? [5 marks] H E- B Unanswered Q4.3 I A X, X 2-EE 66 X How does scenarios analysis differ from sensitivity analysis? (5 marks] HE B I A X, X - Save

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