Assume a margin of error of plus or minus 10 percent in estimating any number required as an input for a capital budgeting decision Under ordinary conditions, the net present value of a project is most sensitive to the estimate of which of the following (1) Amounts of future cash flows (2) Timing o...

In general the net present value of the project is most sensitive to the estimate of the am ...

Assume a margin of error of plus or minus 10 percent in estimating any number required as

Question:

Assume a margin of error of plus or minus 10 percent in estimating any number required as an input for a decision. Under ordinary conditions, the of a project is most sensitive to the estimate of which of the following?
(1) Amounts of future cash flows
(2) Timing of future cash flows
(3) Cost of capital

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...