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Perform sensitivity analysis on the evaluation you did, by testing different WACCs for the project and assessing the outcome, using Oracle Crystal Ball. Carefully explain

Perform sensitivity analysis on the evaluation you did, by testing different WACCs for the project and assessing the outcome, using Oracle Crystal Ball. Carefully explain your assumptions. Summarize the results. Show use the forecast chart. WACC to be picked can be 7.09%, 8.15% and another value close to these e.g. 7.79%. Can this be done with the info given? I don't have any other data here. I guess one could make it up.

Project: The project I evaluate in this post regarding investing decisions is the Pay-in aisle application for retail. According to Gallo (2015), the cost of capital or WACC here would depend heavily on current market conditions and interest rates as well as the assumption that the beta would remain constant going forward which by now, we all can gather is not the case so I use the WACC value calculated by Gurufocus and to leave a little future uncertainty which I think would be valid when ACI goes to integrate their application suite into Co-ops mobile applications as the UK market has not been tested and accounted for while ACI was developing their initial software base. Factors like user friendliness, on the go efficiency, maintenance and to start it all, feature launch all present risks and uncertainty which is why I pick the WACC to be close to 8.15% as opposed to the 7.09% Gurufocus determines today (Gurufocus, 2019). This means that ACI would be expected to return $.0815 for every dollar they obtain in funding the project. This allows me to leave a little margin for error as ACI does not have any solid plans to lower their debt anytime soon by issuing more bonds or lowering the cost of issuing equity. Taking the market risk premium slightly lower than required by Gurufocus analysts = 4% (as opposed to 6%), I get a hurdle rate of 8.15% + 4% = 12.15%. The risk premium was lowered as the project is of moderate risk as we saw in last weeks post. Having not taken anything at face value, the hurdle rate and WACC I present here would give a manager a more accurate value for the projects NPV (Gall, 2015).

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