Conduct sensitivity analysis assuming a best case of 110000 guns are sold annually at a price of 1000 and worst case of 90000 guns are sold annually at a price of 70. After tax cost of capital is 20%.
1. What is the NPV of the base case senerio?
a. <300000
b. 300000-600000
c. 600000-750000
d. >750000
e. none of above
2. what is the NPV of the best senerio?
a. 8000000-8500000
b. 7500000-80000000
c. 9000000-9500000
d. 17500000-18000000
e. none of above.
3. What is the NPV of the worst case scenario?
a. -12500000 to -1500000
b.-1000000 to -750000
c. -500000 to -250000
d. zero to 250000
e. none of above