Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment +30% -25% Revenues -15% +20% Variable costs, percent of +15% -20% revenues Fixed costs +30% -20% Working capital, percent of +30% -50% expected value Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places. Pessimistic Project NPV Expected Optimistic Initial investment Revenues Variable costs Fixed costs Working capital
Blooper's analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment +30% -25% Revenues -15% +20% Variable costs, percent of +15% -20% revenues Fixed costs +30% -20% Working capital, percent of +30% -50% expected value Conduct a sensitivity analysis for each variable and range and compute the NPV for each. Use Spreadsheet 10.1 and accompanying data as a starting point for the analysis. Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places. Pessimistic Project NPV Expected Optimistic Initial investment Revenues Variable costs Fixed costs Working capital
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 19P
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