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Sunset Corporation is analyzing a potential investment project. The initial investment is $200,000, with expected cash flows as follows: Year 1: $50,000 Year 2: $70,000

Sunset Corporation is analyzing a potential investment project. The initial investment is $200,000, with expected cash flows as follows:

  • Year 1: $50,000
  • Year 2: $70,000
  • Year 3: $90,000
  • Year 4: $110,000
  • Year 5: $130,000 Perform a sensitivity analysis by considering two scenarios: one where cash flows increase by 10% and another where cash flows decrease by 10%. Determine the impact on the project's net present value (NPV).

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