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A company is considering a project that will require an initial investment of 29. The project is expected to generate cash inflows in the amount
A company is considering a project that will require an initial investment of 29. The project is expected to generate cash inflows in the amount of P for each of the next n years. Assume that the cost of capital is denoted by r. The table below provides the baseline assumptions for the values of the variables P, n, and r, as well as the best case and worst case values for each of these variables. Variable Baseline Best Case Worst Case Cost of Capital, r 0.06 0.05 0.03 Annual Cash Inflow, 6.2 17.2 7.7 Number of Inflows, n 14 17 19 Perform a sensitivity analysis on the three variables. List the variables in order from most sensitive to least sensitive. rin, P. r, P, n in, r, P Por, n P,n,r n, Per
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