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Ford evaluates a project with an initial investment of $5,500,000, annual cash flows $1,300,000, project life 6 years, and discount rate 11%. Requirements: Calculate the

  1. Ford evaluates a project with an initial investment of $5,500,000, annual cash flows $1,300,000, project life 6 years, and discount rate 11%.
    • Requirements:
      • Calculate the net present value (NPV).
      • Perform a sensitivity analysis on cash flows and discount rates.
      • Prepare a recommendation report.
      • Discuss risks and uncertainties associated with the investment.

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