Question
You are doing a sensitivity analysis of a project and have found the following: The projects NPV is very sensitive to its annual expense estimate
You are doing a sensitivity analysis of a project and have found the following: The projects NPV is very sensitive to its annual expense estimate. The projects NPV is not sensitive to its increase in net working capital estimate. Which of the following statements is most correct concerning these two estimates?
Group of answer choices
Remove the annual expense estimate from the projects NPV calculation.
It is important to have more accurate annual expense estimate.
Remove the increase in NWC estimate from the projects NPV calculation.
It is important to have more accurate increase in NWC estimate.
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