The CEO expressed concern that some of the base-case inputs might be too optimistic or too pessimistic.
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The CEO expressed concern that some of the base-case inputs might be too optimistic or too pessimistic. He wants to know how the NPV would be affected if these six variables were 20% better or 20% worse than the base-case level: unit sales, sales price, variable costs, fixed costs, WACC, and equipment cost. Hold other things constant when you consider each variable and construct a sensitivity graph to illustrate your results.
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