Question: 4 Sensitivity Analysis (Refer 12-5A): %ANPV Sensitivity Analysis = %A Input Input, could be: Capex, ANOWC Demand: #Unit.Sales, Sales. Price Cost: Variable.Cost, Fixed.Oper.Cost Tax-rate

4 Sensitivity Analysis (Refer 12-5A): %ANPV Sensitivity Analysis = %A Input Input, could be: Capex, ANOWC Demand: #Unit.Sales, Sales. Price Cost: Variable.Cost, Fixed.Oper.Cost Tax-rate WACC Requirements: Use the data given above to undertake Sensitivity Analysis for 1) a 10% increase in Variable Cost (COGS) for years 1-5 2) a 10% decrease in Variable cost (COGS) for years 1-5 3) a 20% decrease in Demand for # Units Sold for Years 3-5 4) a decrease in Demand resulting in a drop in sales price to $2/unit for Years 1-5 5) a 10% increase in WACC for Years 1-5 Analyze and submit your findings for each of the above cases.

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