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5. The initial investment outlay for a capital investment project consists of INR 2,00,00,000 for plant and machinery and INR 40 lacs for working capital

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5. The initial investment outlay for a capital investment project consists of INR 2,00,00,000 for plant and machinery and INR 40 lacs for working capital other details are summarized below: (a) indicate the financial viability of the project by calculating the NPV (b) determine the sensitivity of the project's NPV under each of the following conditions: i) Decrease in selling price by 5% ii) Increase in variable cost by 8% iii) Increase in cost of plant and machinery by 10%

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