Swift has a cost of capital of 12 per cent and plans to invest 7m in a
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Swift has a cost of capital of 12 per cent and plans to invest £7m in a machine with a life of four years. The units produced will have a selling price of £9.20 each and will cost £6 each to make. It is expected that 800,000 units will be sold each year. By how much will each variable have to change to make the NPV zero? What are the key variables for the project?
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Initial investment Sales price The relative decrease in sales revenue or selling price per unit that ...View the full answer
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Somshukla Chakraborty
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Related Book For 
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
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