Question: options for expected npv Kathy is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her

options for expected npv Kathy is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project

options for expected npv that her company is considering investing in. Her risk analysis report includes

Kathy is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her company is considering investing in. Her risk analysis report includes the sensitivity curve shown on the graph. NPV (Millions of dollars Base Case -NPV Base Case Price 30-24-18-12-6 0 6 12 18 24 30 CHANGES IN SELLING PRICE (Percent This curve implies that the project is very sensitive to changes in the price of the product. The project's NPV is likely to become negative if the price for which the product can be sold decreases by 12%

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