What does sensitivity analysis of npv show

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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

Reference no: EM131615956

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