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Sensitivity _ Analysis = % NPV / % Input Input could be : Capex, NOWC Demand: #Unit.Sales,Sales.Price Cost :Variable.Cost,Fixed.Oper.Cost Tax rate WACC Requirements: Use the

Sensitivity _ Analysis =%NPV/%Input
Input could be :
Capex,NOWC
Demand: #Unit.Sales,Sales.Price
Cost :Variable.Cost,Fixed.Oper.Cost
Tax rate
WACC
Requirements: Use the data given above to undertake Sensitivity Analysis for
1) a 10% increase in Variable Cost (COGS) for years 1-5
2) a 10% decrease in Variable cost (COGS) for years 1-5
3) a 20% decrease in Demand for # Units Sold for Years 3-5
4) a decrease in Demand resulting in a drop in sales price to $2/ unit for years 1-5
5)5) a 10% increase in WACC for Years 1-5
Analyze and submit your findings for each of the above cases.

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