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# Net Present Value - most likely, pessimistic, optimistic rosy

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Below is a earning's forecast for a "Most Likely" Scenario. Determine the Net Present Value for each of the following three scenarios.
Most Likely Conditions as show below
Pessimistic Sales are only 175,000 units annually, and Cost of Goods sold raises from 70% of Sales revenue to 75% for all years. Price drops to \$100 in year three and all later years
Optimistic "Rosy" Sales start as at 200,000 units as shown but increase by 10% annually. The Cost of Goods Sold reduces by 3% annually starting with 70% in year 1. Cost of Capital declines to 5%.

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The NPV of each scenario is worked out ona separate sheet.

Below is a earning's forecast for a "Most Likely" Scenario. Determine the Net Present Value for each of the following three scenarios.

Most Likely Conditions as show below
Pessimistic Sales are only 175,000 units annually, and Cost of Goods sold raises from 70% of Sales revenue to 75% for all years. Price drops to \$100 in year three and all later years
Optimistic "Rosy" Sales start as at 200,000 units as shown but increase by 10% annually. The Cost of Goods Sold reduces by 3% annually starting with 70% in year 1. Cost of Capital declines to 5%.
"Most Likely" scenario
Quantity Sold 200000 units
Price \$150 year 1 & 2
\$125 year 3 & ...

#### Solution Summary

The expert examines the net present value for the most likely pessimistic optimistic rosy.

\$2.19