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Net Present Value (NPV) Calculation with Sensitivity Analysis : A company is evaluating an investment project with an initial outlay of $1,000,000. The project is
Net Present Value (NPV) Calculation with Sensitivity Analysis: A company is evaluating an investment project with an initial outlay of $1,000,000. The project is expected to generate cash flows of $300,000 annually for the next five years. Using a discount rate of 10%, calculate the net present value (NPV) of the project. Additionally, conduct a sensitivity analysis by varying the discount rate from 8% to 12% and discuss the impact on the project's NPV and investment decision.
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