Question: Perform a scenario analysis by simultaneously varying two parameters. Choose two parameters that best fit your company and construct three scenarios in addition to the
Perform a scenario analysis by simultaneously varying two parameters. Choose two parameters that best fit your company and construct three scenarios in addition to the baseline analysis. For example, vary Sales Growth through year 6 and the % of Cost of Goods Sold, holding all the other parameters fixed (at the level of initial assumptions) and then fill in the highlighted blank boxes for NPV in Excel. Attach your scenario analysis results in your word document (like in the sensitivity analysis, attach the NPV results) Explain why the two parameters you picked should simultaneously vary and why they are important to analyze for your company. Write your answer in the word document. Which scenario generates the highest NPV?

Scenario Analysis Sales Growth through Year 6 % Cost of Goods Sold NP'U Scenario 1 5% 71% Scenario 2 6% 72% Scenario 3 8% 73%
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