Topic 7 Case Study Solar Electronics Corporation scenario analysis PDF

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Download Topic 7 Case Study Solar Electronics Corporation scenario analysis PDF

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Solar Electronics Corporation’s Jet Engine – Scenario Analysis For example, consider the effect of a few airline crashes. These crashes are likely to reduce flying in total, thereby limiting the demand for any new engines. Furthermore, even if the crashes do not involve solar-powered aircraft, the public could become more averse to any innovative and controversial technologies. Hence, SEC’s market share might fall as well.

Market size of expected Market share of expected The rest of the variables as expected

70% 2/3

So given the above figures, please calculate NPV of the project (assume that the rest of the estimates are the same as in the expected forecast, see Solar Electronics Corporation’s Jet Engine – Sensitivity Analysis). Comment on your result.

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