Solution for Principles of Corporate Finance 7E CH10精品分析.docVIP

CHAPTER 10 A Project is Not a Black Box Answers to Practice Questions 1. Year 0 Years 1-10 Investment ￥15 B 1. Revenue ￥44.00 B 2. Variable Cost 39.60 B 3. Fixed Cost 2.00 B 4. Depreciation 1.50 B 5. Pre-tax Profit ￥0.90 B 6. Tax @ 50% 0.45 B 7. Net Operating Profit ￥0.45 B 8. Operating Cash Flow ￥1.95 B Following the calculations in Section 10.1 of the text, we find: NPV Pessimistic Expected Optimistic Market Size -1.2 3.4 8.0 Market Share -10.4 3.4 17.3 Unit Price -19.6 3.4 11.1 Unit Variable Cost -11.9 3.4 11.1 Fixed Cost -2.7 3.4 9.6 The principal uncertainties appear to be market