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The following chart shows the sensitivities of NPV to six different variables. Which one of the statement is correct based on the chart? A. NPV
The following chart shows the sensitivities of NPV to six different variables. Which one of the statement is correct based on the chart? A. NPV is most sensitive to WACC B. NPV is more sensitive to variable cost (VC) than to fixed cost C. When price increases by 25%, NPV would increase by less than $500 D. One cannot find which variable is most influential to NPV from the chart 8. Pric $2,500 NPV $1,500 Units $500 WACC ipment 25% $500 Fixed Costs $1,500 Percentage Deviation from Base -$2,500
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