Perform a sensitivity analysis by varying the project forecasts as follows: a. Suppose first year sales will

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Perform a sensitivity analysis by varying the project forecasts as follows:

a. Suppose first year sales will equal 2%–4% of IBM’s revenues.

b. Suppose the cost of capital is 10%–15%.

c. Suppose revenue growth is constant after the first year at a rate of 0%–10%.

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Corporate Finance

ISBN: 9780134999463

5th Edition

Authors: Jonathan Berk, Peter DeMarzo

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