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:
.png)
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
Step by Step Solution
3.47 Rating (160 Votes )
There are 3 Steps involved in it
Base case 1 Net present value 2763262 2 Internal rate of return 1622 Sensitivit... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
357-B-F-F-M (5391).docx
120 KBs Word File
