Question
Coca-Cola Company is evaluating a project with the following cash flows: Year Cash Flow ($) 1 $200,000 2 $250,000 3 $300,000 4 $350,000 5 $400,000
Coca-Cola Company is evaluating a project with the following cash flows:
Year | Cash Flow ($) |
1 | $200,000 |
2 | $250,000 |
3 | $300,000 |
4 | $350,000 |
5 | $400,000 |
Perform a sensitivity analysis by considering two scenarios: one where cash flows increase by 15% and another where cash flows decrease by 10%. Determine the impact on the project's net present value (NPV).
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Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
