Question: How would you perform a sensitivity analysis on the unit sales, salvage value , and WACC for the project? Assume that each of these variables

How would you perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project? Assume that each of these variables deviates from its base-case, or expected, value by plus or minus 10%, 20%, and 30%. Explain how you would calculate the NPV, IRR, MIRR, and payback for each case; but don’t do the analysis unless your instructor asks you to.

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The base case value for unit sales was 100 therefore if you were to assume that this value deviated by plus and minus 10 20 and 30 the unit sales valu... View full answer

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