# Question: With the following information calculate the projects 1 Net present

With the following information, calculate the projects

(1) Net present value,

(2) Internal rate of return:

Sensitivity analysis

Calculate, for each of the following, the NPV, IRR, and payback period if

(a) Capital assets are increased by 10%.

(b) Working capital is increased by 5%

(c) Cash inflows are increased by 5%.

(d) Capital assets are increased by 20% and cash inflows by 15%.

(e) Both working capital and cash inflows are decreased by 10%.

(f) Cost of capital is increased to8%.

(1) Net present value,

(2) Internal rate of return:

Sensitivity analysis

Calculate, for each of the following, the NPV, IRR, and payback period if

(a) Capital assets are increased by 10%.

(b) Working capital is increased by 5%

(c) Cash inflows are increased by 5%.

(d) Capital assets are increased by 20% and cash inflows by 15%.

(e) Both working capital and cash inflows are decreased by 10%.

(f) Cost of capital is increased to8%.

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