Question: Please answer question b (This question has two parts.) The following image illustrates how the Net Present Value of a project, specifically the HomeNet example
Please answer question b
(This question has two parts.) The following image illustrates how the Net Present Value of a project, specifically the HomeNet example worked through in out lecture slides, varies as a single underlying assumption is changed. Units Sold (000s per year) 3.5 5065 Sale Price ($ per unit) 260 280 Cost of Goods Question A (5 points): This type of analysis is known as: O A. Incremental Earnings Forecast OB. Accelerated Depreciation Analysis C. Sensitivity Analysis OD. EBIT Break-Even Analysis O E. Scenario Analysis Question B (5 points): Based on our lecture material, as a result of the outcome of this analysis (from part A), which single underlying assumption deserves the most scrutiny both during the estimation process, and during the management of the project after it starts? O A. Number of Units Sold O B. Cost of Capital O C. Net Working Capital OD. Cost of Goods Sold O E. Sale Price (This question has two parts.) The following image illustrates how the Net Present Value of a project, specifically the HomeNet example worked through in out lecture slides, varies as a single underlying assumption is changed. Units Sold (000s per year) 3.5 5065 Sale Price ($ per unit) 260 280 Cost of Goods Question A (5 points): This type of analysis is known as: O A. Incremental Earnings Forecast OB. Accelerated Depreciation Analysis C. Sensitivity Analysis OD. EBIT Break-Even Analysis O E. Scenario Analysis Question B (5 points): Based on our lecture material, as a result of the outcome of this analysis (from part A), which single underlying assumption deserves the most scrutiny both during the estimation process, and during the management of the project after it starts? O A. Number of Units Sold O B. Cost of Capital O C. Net Working Capital OD. Cost of Goods Sold O E. Sale Price
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