Z Ltd. is considering a project with following cash flow:Cost of the plant: 70,000The cost of capital is 8%. Measure the sensitivity of the project to the change in level of savings.PVAF_(8%1): 0.926PVAF_(8%2): 0.857(A) 3.58%(B) 4.85%(C) 8.54%(D) 6.78%

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Year 1 2 Running cost 20,000 25,000 Savings 60,000 70,000 Year 1 2 Running cost 20,000 25,000 Savings 60,000 70,000

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