AB7. What is the expected NPV in C5?ScenarioProbabilitiesNPV12 Worst Case3 Base Case4 Best Case0.2(52,125)0.627,6520.2107,4295 Expected NPV?8. You wish to create a Data Table thatABDEcalculates the NPV with various initialYear Cash FlowIO2,547.98outlays in D1:E6. Which cell should beentered into the Data Table dialog box,2-5000-7000311000-6000and in which edit box? Hint: pg. 400 of42000-5000textbook and ch.13 Worksheet has a533000-4000sample644000-30007 WACC10%a) B7, Row inputb) B7, Column inputc) B2, Row inputd) B2, Column inpute) E1, Column inputData Table10Row input cell:11Column input cell:12OKCancel1314

Expected NPV in C5 is shown as follow-

Answered: A B 7. What is the expected NPV in C5?…

A B 7. What is the expected NPV in C5? Scenario Probabilities NPV 1 2 Worst Case 0.2 (52,125) 27,652 3 Base Case 0.6 4 Best Case 0.2 107,429 5 Expected NPV ?

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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Question

A
B
7. What is the expected NPV in C5?
Scenario
Probabilities
NPV
1
2 Worst Case
3 Base Case
4 Best Case
0.2
(52,125)
0.6
27,652
0.2
107,429
5 Expected NPV
?
8. You wish to create a Data Table that
A
B
D
E
calculates the NPV with various initial
Year Cash Flow
IO
2,547.98
outlays in D1:E6. Which cell should be
entered into the Data Table dialog box,
2
-5000
-7000
3
1
1000
-6000
and in which edit box? Hint: pg. 400 of
4
2000
-5000
textbook and ch.13 Worksheet has a
5
3
3000
-4000
sample
6
4
4000
-3000
7 WACC
10%
a) B7, Row input
b) B7, Column input
c) B2, Row input
d) B2, Column input
e) E1, Column input
Data Table
10
Row input cell:
11
Column input cell:
12
OK
Cancel
13
14

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