Question: 6. Perform a sensitivity analysis on four parameters: Select four parameters from the list below and clearly explain why those parameters are important to analyze

 6. Perform a sensitivity analysis on four parameters: Select four parameters
from the list below and clearly explain why those parameters are important

6. Perform a sensitivity analysis on four parameters: Select four parameters from the list below and clearly explain why those parameters are important to analyze for your company in the word document. The Worst and Best cases for each assumption are already provided. Do the sensitivity analysis in Excel and report your results in the word document (just the NPV results, unlike in the baseline analysis where you need to report your analysis in rows 3-57.) Parameter Initial WorstCase Best Case Assumption Sales in Year 1 (in thousands) $30,000 $27,000 $33,000 Sales Growth through Year 6 6% 0% 10% Cost of Goods Sold (9% of Sales) 72% 779% 67% Cost of Capital 20% 23% 17% Accounts Receivable % of Next Year Sales 15% 20% 10% Page 4 of 7

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!