Please note that in the capex sensitivity, capital expenditure used to be 0.3% and now changed to 6% from 2016.

5. Sensitivity Analysis Perform a sensitivity analysis and compare and comment on the effect on valuation for each of the following 2 scenarios: a. The weighted average cost of capital =9% b. The forecasted annual increase in capital expenditures is 6% of sales for 2016 and beyond c. Explain why the outcomes you arrived at make sense from a theoretical standpoint. Use the template below to complete. WACC Sensitivity Capex Sensitivity Perpetuity Growth Method Perpetuity Growth Method WACC Terminal Growth Rate 9.0% 4.0% \begin{tabular}{lr} WACC & 12.0% \\ \hline Terminal Growth Rate & 4.0% \\ \hline \end{tabular} Year Years into the future NPV of 5-years FCF NPV of 5-years FCF Terminal Value of FCF Terminal Value of FCF PV of TV PV of TV Enterprise Value Enterprise Value Explanation: Explanation: 5. Sensitivity Analysis Perform a sensitivity analysis and compare and comment on the effect on valuation for each of the following 2 scenarios: a. The weighted average cost of capital =9% b. The forecasted annual increase in capital expenditures is 6% of sales for 2016 and beyond c. Explain why the outcomes you arrived at make sense from a theoretical standpoint. Use the template below to complete. WACC Sensitivity Capex Sensitivity Perpetuity Growth Method Perpetuity Growth Method WACC Terminal Growth Rate 9.0% 4.0% \begin{tabular}{lr} WACC & 12.0% \\ \hline Terminal Growth Rate & 4.0% \\ \hline \end{tabular} Year Years into the future NPV of 5-years FCF NPV of 5-years FCF Terminal Value of FCF Terminal Value of FCF PV of TV PV of TV Enterprise Value Enterprise Value Explanation: Explanation