We have two projects: project A and project B.

A 10% cost of capital and 10-year projects.

Assume that the financial manager created three scenarios for each project: pessimistic, most likely, and optimistic. The table below summarizes the cash inflows .

using excell Calculate the NPV for each of the three scenarios for each project.

Calculate the range of cash inflows.

Calculate the NPV ranges.

\begin{tabular}{lcc} & Project A & Project B \\ \hline Initial investment & $10,000 & $10,000 \\ \hline & \multicolumn{2}{c}{ Annual cash inflows } \\ \hline Outcome & & \\ Pessimistic & $1,500 & $0 \\ Most likely & 2,000 & 2,000 \\ Ontimistic & 2500 & 4000 \end{tabular}