Capital budgeting processQuestion 6: Best Case and Worst Case ScenarioScenarioProbabilityUnit SalesUnit PriceNPVBest Case25%2,000$220$278,940Base Case50%1,350$200$88,010Worst Case 25%1,000$150($48,527) Expected NPV = $ 101,608Standard…
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Question 5F(x1x2) = (min{x1, 3x2) ^1/2W1≥ 1W2≥ 1The cost minimizing combination requires that:MRTS=MPx1 /MPK=w1/w2Let x1 be units of labor while…