Task: Test sensitivity of CAPEX inputs e.g., "k" the discount rate, "investment" the amount invested i.e., $900,and annual inflow i.e., $300. 1. Calculate NPV using input given. 2. If NPV is positive, try increase k until you have NPV=0 result. 3. Do the same for original investment- increase or decrease by a certain amount to make NPV=0. 4. Now try the annual inflow - $300 annual inflow has to increase/decrease by certain annual inflow e.g., Annual inflow has to reduce to $260 to make NPV=0. 5. The most important: what is the most robust input - i.e., input that has to change most to make NPV = 0 and your conclusion CAPERU & Costof Capital Quiz 2 3. R