Refer to the data provided below for Proposal A below and answer the following questions.

Proposal A

Initial investment $$100,000$

Cash flow from operations

Year $160,000$

Year $240,000$

Year $335,000$

Disinvestment $-$

Life $($years$)3$

Discount rate $($for all proposals$)12\%$

Compute the net present value for Proposal A and consider this the likely scenario. Next, prepare an optimistic and pessimistic scenario. For the optimistic scenario, increase each cash inflow by $10\%$ and for the pessimistic scenario, decrease each net cash inflow by $10\%.$

Note: Round your answers to the nearest whole dollar. Use a negative sign to indicate a cash outflow.

Use a Sensitivity Analysis to Adjust Cash Flows in NPV

Refer to the data provided below for Proposal A and also provided in an Excel file in this link to answer the following questions.

$\backslash$table$[[,$Proposal$],[$Initial investment,$$100,000],[$Cash flow from operations,$],[$Year $1,60,000],[$Year $2,40,000],[$Year $3,35,000],[$Disinvestment$,-],[$Life $($years$),3],[$Discount rate $($for all proposals$),12\%]]$

inflow by $10\%.$

Note: Round your answers to the nearest whole dollar. Use a negative sign to indicate a cash outflow.