Question
Following financial information relates to an investment project: What is the sensitivity of the net present value of the investment project to a change in
Following financial information relates to an investment project:
What is the sensitivity of the net present value of the investment project to a change in sales volume?(A) 7.1%(B) 2.6%(C) 5.1%(D) 5.3%
PV of sales revenue PV of variable costs PV of contribution in '000 50,025 (25,475) 24,550
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
