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1. Perform sensitivity analysis on the following project by first finding the NPV for the base...

1. Perform sensitivity analysis on the following project by first finding the NPV for the base case, then for a 10% decline in quantity sold and a 10% increase in quantity sold.

      Investment = $270,000 Straight line depreciation

                                     over 3 years

      quantity sold per year = 20,000

      Price per unit = $20

      Operating Cost = $10 per unit (all variable)

      Tax rate 25%   cost of capital 10%

      Project will have a 3-year life

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jeff jeffy answered 2 years ago
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