Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project. Assume that each of these variable deviates from its base-case,
Perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project. Assume that each of these variable deviates from its base-case, or expected value by plus or minus 10%, 20% and 30% Calculate NPV for each case (21 NPV it total) Please show formula in excel.
Sensativity Analysis Data Table | |||||||||||
Unit Sales | $ 195,000.00 | Base Case | Unit Sales | NPV | Salvage Value | NPV | WACC | NPV | |||
Salvage Value | $ 45,000.00 | -30% | $ 136,500.00 | $ 31,500.00 | 9% | ||||||
WACC | 12% | -20% | $ 156,000.00 | $ 36,000.00 | 10% | ||||||
-10% | $ 175,500.00 | $ 40,500.00 | 11% | ||||||||
0% | $ 195,000.00 | $ 45,000.00 | 12% | ||||||||
10% | 214,500.00 | $ 49,500.00 | 13% | ||||||||
20% | $ 234,000.00 | $ 54,000.00 | 14% | ||||||||
30% | $ 253,500.00 | $ 58,500.00 | 15% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started