Question: Without using an excel spreadsheet (just a financial calculator) how did they find the answers to fill out the NPV Table? SENSITIVITY ANALYSIS Expected Values
SENSITIVITY ANALYSIS Expected Values Initial Investment = $150 Straight Line Depreciation over 3 years Quantity = 50 units Price = $3 per unit Revenues from project $150 per year for 3 years I Fixed cost each year = $30 Variable costs = $1 per unit Cost of Capital = 10% Tax Rate=25% NPV Table Change NPV Quantity Variable Cost Cost of Capital -10% - 7.006 20.971 14.534 0 11.645 11.645 11.645 +10% 30.297 2.32 8.842
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