Question: Consider the same project as problem 3. Assume that the product life-cycle of seven years is viewed as a safe bet, but that the scale

Consider the same project as problem 3. Assume that the product life-cycle of seven years is viewed as a safe bet, but that the scale of demand for the product is highly uncertain. Analyze the sensitivity of the project’s NPV to the unit sales scale factor and to the cost of capital.

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