Question 18 Points: 1 Project A has the following estimated cash flows and present values: Year Cash flow $ Discount factor@ 12% Present value $ 0 Cost (95 000) 1.0 (95 000) 1-5 Contribution per annum 50 000 3.605 180 250 1-5 Fixed costs per annum (25 000) 3.605 (90 125) 5 Residual value 20 000 0.567 11 340 Required: Calculate the sensitivity of the investment decision to a change in the annual contribution. A. Sensitivity of the investment decision to a change in the annual contribution is about 5.89% increase in annual contribution. B. Sensitivity of the investment decision to a change in the annual contribution is about 5.89% decrease in annual contribution. OC. Sensitivity of the investment decision to a change in the annual contribution is about 3.59% increase in annual contribution. D. Sensitivity of the investment decision to a change in the annual contribution is about 3.59% decrease in annual contribution