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Krishna is looking at a potential capital project and has completed the sensitivity analysis process showing how much they could be off in their cash
Krishna is looking at a potential capital project and has completed the sensitivity analysis process showing how much they could be off in their cash flow projects. Their estimates show an NPV of the project at $ with a breakeven NPV of $ What should Krishna do with this information?
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Keep the project in consideration, since they have a wide margin of error in his estimates.
Disregard the project from consideration since it has such a low breakeven NPV
Redo the estimated NPV with different cash flows, as this calculation doesnt seem accurate.
Definitely invest in this project as it has a positive NPV
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