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Question: 03--06 a) ABC Company has considered a project with the following relevant forecasted cash flows. Overhead cost is not affected by depreciation, so you
Question: 03--06 a) ABC Company has considered a project with the following relevant forecasted cash flows. Overhead cost is not affected by depreciation, so you can ignore taxes. Particulars YO Y 1-5 each 1. Machine cost Tk 50,000 2. Sales Volume 5,000 unit 3. Operating cost Tk 7 per unit 4. Selling price Tk 10 per unit 5. Cost of finance 10% Do sensitivity analysis of NPV to find the extent (both in amount and percentage) to which all variables like sales volume, unit price, cost of finance and life of the project can deviate from its expected value without harming the viability of the project. Question: 03--06 a) ABC Company has considered a project with the following relevant forecasted cash flows. Overhead cost is not affected by depreciation, so you can ignore taxes. Particulars YO Y 1-5 each 1. Machine cost Tk 50,000 2. Sales Volume 5,000 unit 3. Operating cost Tk 7 per unit 4. Selling price Tk 10 per unit 5. Cost of finance 10% Do sensitivity analysis of NPV to find the extent (both in amount and percentage) to which all variables like sales volume, unit price, cost of finance and life of the project can deviate from its expected value without harming the viability of the project
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