Discussion Topic

This case will test your understanding of the various concepts that were introduced in this course up until now. You will be asked to estimate the cash flow from assets, apply capital budgeting techniques, propose an investment decision, and perform a sensitivity analysis.

Your Task

Go to Chapter $6,$ page $203$ and read the attached case study entitled 'Bethesda Mining Company".

Solve the questions attached to the case study.

In addition, please answer the following question:

a$.$ How sensitive is NPV to a one percent change in the project's revenue?

Submit your answers to the forum below.

Guidelines

In the event you are faced with nonconventional cash flows, please report both the IRR and Modified IRR

This activity is allocated a weight of $15$ percent of your overall grade

You should spend around three hours on this activity

All reports should be completed by Monday before midnight $($Lebanon time$)$

Please work on this assignment in groups of four

$-$You will receive your grade on this case prior to the end of the course.