Question: This curve implies that the project is not very sensitive to changes in cost of capital. The project's NPV is likely to if the cost
This curve implies that the project is not very sensitive to changes in cost of capital. The project's NPV is likely to
if the cost of
capital increases to
Along with the sensitivity analysis, Elle is including a scenario analysis for the project in her report, giving the probability of the project generating a
negative NPV Her report includes the following information about the scenario analysis:
Complete the missing information in Elle's report:
The expected net present value of the project is
Standard deviation of the net present value the NPV of the project is likely to vary by
million.
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