Better Mousetraps from Assignment 2 wants to consider some what if scenarios. In all cases assume straight line depreciation.

a) Perform a sensitivity analysis for the following variables: Initial investment, number of sales (for all years), cost per unit, and working capital (as percent of next year sales). Assume what would happen if the estimates double or halved (so if one variable was for example 100, do for 200 and 50), do a tornado diagram and based on that explain which variables affect more NPV and therefore its estimates are more important.

b) Perform a scenario analysis when you consider the best-case scenario and worst-case scenario based on the variables from part a)