The adjusted present value approach and the WACC approach should yield the same results. Can you think
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The adjusted present value approach and the WACC approach should yield the same results. Can you think of a situation when they diverge?
For the illustration (Clariant) given in the chapter, conduct a sensitivity analysis for the following factors:
• Discount rate
• Sales
• Growth rate in sales
• Investment in working capital and capital expenditure
• Terminal growth rate.
Draw suitable graphs.
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