Scenario Analysis. Wee Waa Motors Ltd has the following estimates for its new gear
assembly project:
- price 1$995 per unit
- variable costs = $400 per unit
-fixed costs = $4.25 million
-quantity = 75000 units.
Suppose the company believes all of its estimates are accurate only to within #15%. What values should the company use for the four variables given here when it performs its best-
case scenario analysis? What about the worst-case scenario?
Sensitivity Analysis. For the company in the previous problem, suppose management is most
concerned about the impact of its price estimate on the project's profitability. How could you
address this concern for Wee Waa Motors? Describe how you would calculate your answer.
What values would you use for the other forecast variables?
Scenario Analysis. Wee Waa Motors Ltd has the following estimates for its new gear
assembly project:
-price $995 per unit
-variable costs = $400 per unit
-fixed costs = $4.25 million
-quantity = 75000 units.
Suppose the company believes all of its estimates are accurate only to within #15%. Whatvalues should the company use for the four variables given here when it performs its best-
case scenario analysis? What about the worst-case scenario?
Sensitivity Analysis. For the company in the previous problem, suppose management is most
concerned about the impact of its price estimate on the project's profitability. How could you
address this concern for Wee Waa Motors? Describe how you would calculate your answer.
What values would you use for the other forecast variables?
please help me to solve the problems, no excel pls
