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EXERCISE 2 A company has a cost of capital of 10%. Project A has the following present values. Initial investment -300,000 Cash inflows Cash

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EXERCISE 2 A company has a cost of capital of 10%. Project A has the following present values. Initial investment -300,000 Cash inflows Cash outflows 600,000 100,000 What is the sensitivity of Project A to changes in the cash inflows? A 33% 33.33 B 40% C 67% D 300% Prof (NPV Nashflow) x 100 04 NIV 15

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