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solina solina
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7 years ago
Natick Nurseries has used scenario analysis to evaluate the purchase of a former dairy to use for nursery stock. The best case scenario produced a very favorable NPV of $4,000,000; the NPV of the most likely case was $2,000,000, but the worst case scenario resulted in an NPV of $(3,000,000) which would bring the company close to bankruptcy. Natick could improve its decision by
A) using sensitivity analysis.
B) using simulation analysis.
C) simply accepting the best case scenario and rejecting the other outcomes.
D) weighting the favorable scenarios more heavily to increase the expected NPV.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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Heavy Heart Thank you bio-forums! Heavy Heart
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LutionalLutional
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7 years ago
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solina Author
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#2
7 years ago
Simple and easy, thank u
Heavy Heart Thank you bio-forums! Heavy Heart
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#3
4 years ago
thank you
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