Question

Broadband, Inc. has estimated preliminary cash flows for a project and found that the NPV for those cash flows is $400,000. The company now plans to perform a scenario analysis on the cash flow and NPV estimates. It will use an NPV of Blank______ as the base case.

Multiple choice question.

$400,000


$220,000


$360,000


$440,000
GPT-4o mini
In scenario analysis, the base case typically represents the expected or most likely scenario for the project's cash flows and NPV. Since Broadband, Inc. has estimated the NPV to be $400,000, this would generally be used as the base case for their analysis.

Therefore, the answer is:

**$400,000**

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