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Using excel, conduct a sensitivity analysis to determine the sensitivity of NPV to the changes in the unit sales, WACC, variable costs, sales price and
Using excel, conduct a sensitivity analysis to determine the sensitivity of NPV to the changes in the unit sales, WACC, variable costs, sales price and non-variable costs.
Complete these tables/ fill in the blanks:
Base | NPV | |
base case | 1000 | 3,463,337.22 |
-20% | 800 | ? |
-10% | 900 | ? |
0% | 1000 | ? |
10% | 1100 | ? |
20% | 1200 | ? |
Change of NPV with the change in sales price
Sales Price | NPV | |
Base Case | 24,000 | 3,463,337.22 |
-20% | 19,200 | ? |
-10% | 21,600 | ? |
0% | 24,000 | ? |
10% | 26,400 | ? |
20% | 28,800 | ? |
Change of NPV with change in Variable costs
variable cost | NPV | |
Base case | 17,500 | 3,463,337.22 |
-20% | 14,000 | ? |
-10% | 15,750 | ? |
0% | 17,500 | ? |
10% | 19,250 | ? |
20% | 21,000 | ? |
Scenario anaylsis
Probability | Unit sales | sales price per unit | Variable costs per unit | NPV | |
best case | 0.25 | 1200 | 28,800 | 14,000 | ? |
base case | 0.5 | 1000 | 24,000 | 17,500 | ? |
worse case | 0.25 | 800 | 19,200 | 21,000 | ? |
Basic information:
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