Question: Use a Sensitivity Analysis to Adjust Cash Flows in NPV Refer to the data provided below for Proposal A and also provided in an Excel
Use a Sensitivity Analysis to Adjust Cash Flows in NPV
Refer to the data provided below for Proposal A and also provided in an Excel file in this link to
answer the following questions.
a Prepare a table in Excel to compute the net present value for Proposal A and consider this the
likely scenario. Next, prepare an optimistic and pessimistic scenario. For the optimistic scenario,
increase each cash inflow by and for the pessimistic scenario, decrease each net cash inflow
by
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