A Ltd. is considering investing in new project with the following details: Initial capital cost *100...

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A Ltd. is considering investing in new project with the following details: Initial capital cost *100 Crores Annual unit sales 1.25 Crores Selling price *100 per unit Variable cost *50 per unit Fixed cost 12.50 Crores per year Discounting Rate 6% Considering life of the project as 3 years, you are required to: (a) CALCULATE the NPV of the project. (b) COMPUTE the impact on the project's NPV considering a 5% adverse variance in following variables: (i) Selling Price per Unit (ii) Variable Cost Per Unit (iii) Fixed Cost Per Unit WHICH variable is having maximum effect? (c) MEASURE the maximum sensitivity of the project to change in the variable (as found in part (b) above) such that NPV becomes zero. PV factors @ 6% are: Year PV Factor 1 2 0.943 0.890 3 0.840 4 0.792 5 0.747 A Ltd. is considering investing in new project with the following details: Initial capital cost *100 Crores Annual unit sales 1.25 Crores Selling price *100 per unit Variable cost *50 per unit Fixed cost 12.50 Crores per year Discounting Rate 6% Considering life of the project as 3 years, you are required to: (a) CALCULATE the NPV of the project. (b) COMPUTE the impact on the project's NPV considering a 5% adverse variance in following variables: (i) Selling Price per Unit (ii) Variable Cost Per Unit (iii) Fixed Cost Per Unit WHICH variable is having maximum effect? (c) MEASURE the maximum sensitivity of the project to change in the variable (as found in part (b) above) such that NPV becomes zero. PV factors @ 6% are: Year PV Factor 1 2 0.943 0.890 3 0.840 4 0.792 5 0.747