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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Vijay
Transcribed Image Text: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
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