Question: Rani & Co. desires to take a project whose cost is ? 12,000 and useful life is 4 years. Expected annual cash flows are ?

Rani & Co. desires to take a project whose cost is ? 12,000 and useful life is 4 years. Expected annual cash flows are ? 4,500 p.a. Cost of capital is 14%. Calculate the sensitivity of the ‘cost of capital’ in percentage given that:
PVAF_(14%,4) : 2.9137
PVAF _(18%,4): 2.6667
(A) 29%
(B) 22%
(C) 22%
(D) 64%

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