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Caf du Monde is considering investing in a new coffee brewing machine. The machine costs 100,000 and has an expected useful life of 5 years.
Café du Monde is considering investing in a new coffee brewing machine. The machine costs €100,000 and has an expected useful life of 5 years. The estimated cash inflows from the investment are €30,000 per year. However, there is uncertainty regarding the cash inflows due to changing market conditions. Perform a sensitivity analysis to determine the impact of a 10% increase and decrease in cash inflows on the project's net present value (NPV).
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