2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life...
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2. ABC Corp. is planning an investment of $100.000,000, WACC is 9%, the economic life of the investment is 10 years and other data are given at the following figure.
Considering different market condition as a worst case, base case and best case, calculate (at least for base case) the NPV and interpret the feasibility of the investment.
Variables
Worst case
Expected
Best case
Market size
1.000.000
1.250.000
1.500.000
Market share
0,20
0,25
0,30
Unit price($)
650
675
695
variable cost/unit ($)
625
620
615
Fix cost/ per unit ($)
28
26
24
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