Question: With the following information, calculate the projects (1) Net present value , (2) Internal rate of return: Sensitivity analysis Calculate, for each of the following,

With the following information, calculate the projects
(1) Net present value,
(2) Internal rate of return:

With the following information, calculate the projects (1) Net present

Sensitivity analysis
Calculate, for each of the following, the NPV, IRR, and payback period if
(a) Capital assets are increased by 10%.
(b) Working capital is increased by 5%
(c) Cash inflows are increased by 5%.
(d) Capital assets are increased by 20% and cash inflows by 15%.
(e) Both working capital and cash inflows are decreased by 10%.
(f) Cost of capital is increased to8%.

Base case Time 0 Year 1 Year 1 to 20 Cash inflows Cost of capital is 6% Capital assets $2,500,000 Working capital 500,000 500,000

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