Question: Part (C) 1. What is sensitivity analysis? 2. Perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project. Assume that

 Part (C) 1. What is sensitivity analysis? 2. Perform a sensitivity
analysis on the unit sales, salvage value, and WACC for the project.

Part (C) 1. What is sensitivity analysis? 2. Perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project. Assume that each of these variables deviates from its base-case, or expected value by plus or minus 10%, 20%, and 30%. Calculate NPV for each case (21 NPV in total: 7 NPV for change in unit sale; 7 NPV for change in salvage value; and 7 NPV for change in WACC), then draw a graph with three lines (one for Unit Sales, one for Salvage Value, and one for WACC, all three lines in the

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