Using the pro forma statements for the previous project and your knowled ge of sensitivity analysis determine the input to

which the analysis is most sensitive$.$ From the baseline nubmers $($which are the values given in the previous problem$)$ use a

range of $\frac{+}{-}10\%$ to determine the sensitivity of our outcome variables $($NPV$/$IRR$)$ to each of the following inputs: Revenue,

Expenses, the Initial Investment, the NWC percentage required, the discount rate, and the tax rate. Use a discount rate of

the slides. The most sensitive in put is the in put for which the outcome $($NPV$)$ changes the most as a result of a $+/-10\%$

change in the input. Everything should be done in Excel and should tie back to the actual values from part $1.$

The answers here can be hard coded. Meaning you can calculate the NPV which would result from each change and then

type it manually $($or copy and paste the value$)$ into the appropriate cell. However, this can also be done using a Data Table in

Excel $($you will likely need to add some extra tables here to make it work$).$ Should you choose to do so$,$ I will give $25$ extra

credit point towards this as signment. There is no partial credit for the extra credit. You either get it or don't.

Which variable is the most sensitive$?$ Why?