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How do you construct a sensitivity analysis using the numbers provided in excel? 4. Conduct a sensitivity analysis for a project with the following characteristics.
How do you construct a sensitivity analysis using the numbers provided in excel?
4. Conduct a sensitivity analysis for a project with the following characteristics. Each parame- ter can take on any of three different values but once a parameter value is selected, that value remains constant for the 10-year period. The discount rate is 10% and the project life is 10 years. Ignore taxes and depreciation. (1) Sales (units) (2) Price (per unit) (3) Variable cost (per unit) (4) Fixed cost (5) Initial investment Low 160 $3,000 3,000 100,000 Mean 500 $3,750 3,000 200,000 High 960 $4,000 3,000 4,000
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