Question: Sensitivity Analysis ( Refer 1 2 - 5 A ) : Sensitivity _ Analysis ) i Input ? i could be : Capex, ? ?

Sensitivity Analysis (Refer 12-5A):
Sensitivity_Analysis )i
Input ?i could be :
Capex, ????NOWC
Demand: #Unit.Sales, Sales.Price
Cost :Variable.Cost, Fixed.Oper.Cost
Tax-rate
WACC
Requirements: Use the data given above to undertake Sensitivity Analysis for
a 10% increase in Variable Cost (COGS) for years 1-5
a 10% decrease in Variable cost (COGS) for years 1-5
a 20% decrease in Demand for # Units Sold for Years 3-5
a decrease in Demand resulting in a drop in sales price to $2? unit for Years 1-5
a 10% increase in WACC for Years 1-5
Analyze and submit your findings for each of the above cases.
 Sensitivity Analysis (Refer 12-5A): Sensitivity_Analysis )i Input ?i could be :

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!