Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

I AM BEGGING SOMEONE TO ANSWER

Project 2 Sensitivity Analysis Project Project 2 Sensitivity Analysis Project

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Socio-Finance

Authors: Jørgen Vitting Andersen, Andrzej Nowak

2013th Edition

3642419437, 978-3642419430

More Books

Students also viewed these Finance questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago