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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Sensitivity analysis 1 The NPV due to change in first year sales are as follow...View the full answer
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