HO Nov Q J1_Handout_S.... J1_Handout_S.... Deviation from Base 25% 0% -25% Range Mi Topic 10 Capital Budgeting - Additional Topics-2 - X J1_Handout_S.... X J1_Handout_S... MEASURING STAND-ALONE RISK - SENSITIVITY ANALYSIS Week 8 Open... -$ 872.14 NPV with Variables at Different Deviations from Base Sales Price VC/Unit Units Sold Fixed Costs Equipment $2,526.86 -$1,245.67 $1,202.37 -$ 71.26 78.82 78.82 78.82 -2,369.22 1,403.31 -1,044.73 $4,896.07 $2,648.97 $2,247.10 78.82 78.82 1,029.78 $1,901.92 $300.17 228.90 WACC $ 33.62 78.82 127.62 $ 93.99 Week 9 Econo... 1. When all of the inputs are set at their base-case levels, their deviations from base are all zero and the NPV is $78.82. So the vertical axis intercept is at $78.82. 5 2. If the sales price is set 25% above its expected $10 price and all other variables are set at their expected values, the NPV would be +$2,526.86. If the price is set 25% below its expected $10 price, the NPV would be -$2,369.22. All the other NPVs shown in the table were found s