A project requires an initial investment of $150.Your research generates the following estimates of revenues and costs: ![A project requires an initial investment of $150.Your research generates the following estimates of revenues and costs: The cost of capital equals 10%.Assume that the cash flows occur in perpetuity.What does a sensitivity analysis of NPV (without taxes) show? (Answers appear in order: [Pessimistic,Most Likely,Optimistic].) A) 50,-100,+400 B) -50,+300,+500 C) -100,+150,+350 D) +100,+150,+350](https://d2lvgg3v3hfg70.cloudfront.net/TB1768/11ecc151_160c_2887_8268_ad0ccf6c0828_TB1768_11.jpg)
The cost of capital equals 10%.Assume that the cash flows occur in perpetuity.What does a sensitivity analysis of NPV (without taxes) show? (Answers appear in order: [Pessimistic,Most Likely,Optimistic].)
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