Following financial information relates to an investment project: What is the sensitivity of the net present value

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Following financial information relates to an investment project:What is the sensitivity of the net present value of the investment project to a change in sales volume?(A) 7.1%(B) 2.6%(C) 5.1%(D) 5.3%

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Posted Date: Feb 15, 2023 12:20 AM

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Following financial information relates to an investment project: What is the sensitivity of the net present value

Question:

PV of sales revenue PV of variable costs PV of contribution in '000 50,025 (25,475) 24,550 PV of sales revenue PV of variable costs PV of contribution in '000 50,025 (25,475) 24,550

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Corporate Finance Core Principles and Applications

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