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Q 12.40: Flyer Industries is thinking about expanding its warehouse facility. The firm has already calculated the NPV of the project using a discount rate
Q 12.40: Flyer Industries is thinking about expanding its warehouse facility. The firm has already calculated the NPV of the project using a discount rate based on current economic conditions. As part of its process of sensitivity analysis, Flyer now wants to see how the project's NPV might be affected by an increase in the overall health of the U.S. economy. When performing this set of calculations, Flyer should use a discount rate that is lower than the rate used in its previous set of calculations. higher
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