Based on your NPV Scenario / Risk Analysis Grids, is NPV more sensitive to changing cost of capital or changing salvage values? How do you determine this?

2E. Based on your NPV Scenario / Risk Analysis Grids, is NPV more sensitive to changing cost of capital or changing year one sales level assumptions? How do you determine this?

NPV Scenario / Risk Analysis:

Complete the grids below to report 5x5 Grids of NPV vs input variable changes noted

NPV Analysis Grid: NPV vs Discount Rate & Salvage Value Ranges

SV ->

SV-20%

SV-10%

SV Base

SV+10%

SV+20%

300

ATSV ->

ATSV-20%

ATSV-10%

ATSV Base

ATSV+10%

ATSV+20%

$NPV in Cells:

Cost of Capital 4%

6%

8%

10%

12%

NPV Analysis Grid: NPV vs Discount Rate & Year 1 Sales Ranges

Sales Yr.1 ->

Sales Yr.1 -20%

Sales Yr.1 -10%

Sales Yr.1 Base

Sales Yr.1 +10%

Sales Yr.1 +20%

$NPV in Cells:

Cost of Capital 4%

6%

8%

10%

12%