A project has an initial investment of 200. You have come up with the following estimates of the project’s cash flows: Pessimistic Most Likely Optimistic Revenues 20 25 35 Costs 15 14 12 Suppose the cash flows are perpetuities and the cost of capital is 10%. What does sensitivity analysis of NPV (no taxes) show? (Answers appear in order: Pessimistic, Most likely, Optimistic).
50, 110, 230
50, 150, 250
-50, -110, -230
-150, -110, -230
-15-. -90. 30