Question: Question Three: Why are you looking at sensitivity analysis when all you should be looking at is NPV? But before you can answer that question
Question Three: Why are you looking at sensitivity analysis when all you should be looking at is NPV? But before you can answer that question someone else interjects another question: Question Four: wait, NPV is a point estimate and the sensitivity analysis helps us to check what might happen if the cash flow forecasts are off. Isn't that a legitimate point? In answering these questions, address the issue as to whether any of this matters. Would the sensitivity analysis change our rankings of projects that we would have generated just looking at NPV? Be specific. Question Five: I think we should reject Goldie's Square because the only reason it has a positive NPV is because of the positive NPV from credit card sales. Since Target's business is running a retail store, shouldn't we reject any project where the NPV from its retail operations is negative? Question Three: Why are you looking at sensitivity analysis when all you should be looking at is NPV? But before you can answer that question someone else interjects another question: Question Four: wait, NPV is a point estimate and the sensitivity analysis helps us to check what might happen if the cash flow forecasts are off. Isn't that a legitimate point? In answering these questions, address the issue as to whether any of this matters. Would the sensitivity analysis change our rankings of projects that we would have generated just looking at NPV? Be specific. Question Five: I think we should reject Goldie's Square because the only reason it has a positive NPV is because of the positive NPV from credit card sales. Since Target's business is running a retail store, shouldn't we reject any project where the NPV from its retail operations is negative
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