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Jennifer estimated the NPV of a project is $520, using base-line forecasts for revenue (at $12,320) and other input variables. If she turns to a
Jennifer estimated the NPV of a project is $520, using base-line forecasts for revenue (at $12,320) and other input variables. If she turns to a more optimistic estimate of revenue, say $15,300, the new NPV becomes $1,042. She is trying to understand how sensitive NPV is to revenue. For 1% change in revenue, what percentage change in NPV does she expect to see?
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4.15
3.06
8.11
5.82
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