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9. Claybridge Companies is considering tumblers will be $450,000. The CFO' $8.50 each and production CFO expects to be able to sell the used equipment
9. Claybridge Companies is considering tumblers will be $450,000. The CFO' $8.50 each and production CFO expects to be able to sell the used equipment for a new line of tumblers. The initial investment for machinery to make the s best guess is that Claybridge will be able to sel 30,000 tumblers per year at costs will be $3.00 per unit. The machinery will be in place for 4 years, after which the $85,000. The CFO is now using sensitivity analysis to identify high impact of the appropriate inputs. The output of the sensitivity analysis is: variables before doing a more thorough analysis 240,000 Unit Price 160,000 Units Sold 80,000 Salvage Value 0 -80,000 -160,000 -20% 20% 30% -10% 0% 10% % Deviation from Base -30% Based on the sensitivity analysis, the project's NPV is least sensitive to changes in the: a. WACC. b. salvage value. c. unit price. d. number of units sold
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