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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