4 A company is using sensitivity analysis to analyse the risk of a two year investment opportunity. The following cash flow model is available: Year Capital expenditure Revenue Costs Net cash flow 0 (30,000) (30,000) 1 60,000 37,200 22,800 2 60,000 37,200 22,800 The relevant discount rate used is 16% and the net present value of the project has been calculated as 6,599. Is this project sensitive to changes in revenue? Group of answer choices 1. The project is sensitive at both the 5% level and the 10% level. 2. The project is not sensitive to changes in revenue. 3. The project is sensitive at the 10% level, but not at the 5% level. 4. The project is sensitive at the 5% level, but not at the 10% level. Question 5 Which of the following investment appraisal methods take the time value of money into account. You may choose more than one. Group of answer choices 1. Internal rate of return 2. Accounting rate of return 3. Net present value 4. Payback Question 6 You are preparing the estimated cash flows for a project. The project will need an average cash balance of 36,000 for day to day operations. Non-current (fixed) assets for the project will cost 778,000. Stocks/inventory will turnover once every 2.4 weeks; the average period of credit given to customers [debtors/receivables] will be 1.5 weeks; suppliers (creditors/payables) will provide an average of 1.0 weeks credit. What is the working capital requirement (in weeks, to one decimal place) for this project? ( )