k. Assume that Sidney Johnson is confident of her estimates of all the variables that affect the project’s cash
0 units a
1,600 units
chance of
swer: See
(3.) Use the worst-, most likely, and best–case NPVs and probabilities of occurrence to find the project’s
iable at a
s us to bring
sis above.)
sequently,
CC to risk
ini Case Show
adjust for risk.
made?
0.4. Would
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cipal
eet this file for
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ine the inputs
ld even use
create a table
Scenario Summary
Current Values: Base Case Best Case
Changing Cells:
$D$36 $200,000 $200,000 $200,000
$D$37 $10,000 $10,000 $10,000
$D$38 $30,000 $30,000 $30,000
$D$39 4 4 4
$D$40 $25,000 $25,000 $25,000
$D$41 40% 40% 40%
$D$42 10% 10% 10%
$D$43 1,250 1,250 1,600
$D$44 $200 $200 $240
$D$45 $100 $100 $100
$D$46 12% 12% 12%
$D$47 3% 3% 3%
Result Cells:
$C$113 $88,030 $88,030 $278,965
$C$114 23.9% 23.9% 48.3%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Worst Case Base-but forget inflation
$200,000 $200,000
$10,000 $10,000
$30,000 $30,000
4 4
$25,000 $25,000
40% 40%
10% 10%
900 1,250
$160 $200
$100 $100
12% 12%
3% 0%
($48,514) $78,387
1.0% 22.7%
Expected
Value
PV of Inflows
TV of Inflows
Years
Years
Units Sold
Sales
Price Per
Unit
Simulated Input Variables and Key Results
Key Results:
-2,877,184 -1,438,592 0 1,438,592
Probability
Sales
Price Per
Unit