Question: NPV = 115588.9. Please calculate NPV at a minimum DCFROR of 15%. Then evaluate the probability for the project to be economically satisfactory and the
NPV = 115588.9. Please calculate NPV at a minimum DCFROR of 15%. Then evaluate the probability for the project to be economically satisfactory and the most likely NPV to be achieved. Hint: One may analyze the sensitivity NPV to the following parameters and then plot probability vs. NPV. Costs (+/- 40%) Incomes (+/- 30%) Salvage value (+/-20%) Environmental Cost (+/- 30%) Project life (+/- 50%) Plot a tornado diagram Rank the five uncertain parameters based on the NPV sensitivity analysis
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