Question
Sensitivity Analysis for Project Risk Assessment : A company is considering an investment project with an expected cash flow of $200,000 per year for the
Sensitivity Analysis for Project Risk Assessment: A company is considering an investment project with an expected cash flow of $200,000 per year for the next five years. Using a discount rate of 10%, conduct a sensitivity analysis by varying the cash flow projections by ±10% and discuss how changes in cash flow estimates affect the project's net present value (NPV) and investment decision.
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Project Management The Managerial Process
Authors: Eric W Larson, Clifford F. Gray
8th Edition
1260570436, 978-1260570434
