A project requires an initial investment of OMR 300,000 and over its three-year life it is expected to generate a net cash inflows of OMR 150,000 per year and has no residual value. The cost of capital is 15%.

1. What is the sensitivity of the project NPV to change in initial investment?

A) 24.2%

B) 34.2%

C) 4.2 %

D) 14.2%

2. What is the sensitivity of the project NPV to change in total net cash inflows?

A) 12.4%

B) 22.4%

C) 32.4%

D) 2.4%