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A project has a base-case NPV of $500,000. A sensitivity analysis reveals that a 20% increase in the variable cost per unit causes the project
A project has a base-case NPV of $500,000. A sensitivity analysis reveals that a 20% increase in the variable cost per unit causes the project to have an NPV of $100,000. Given this information, you can conclude that a 1% increase in the variable cost per unit leads to a - 2% decrease in NPV 3% decrease in NPV 4% decrease in NPV 5% decrease in NPV 2.5% decrease in NPV
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