Answer to Question #117930 in Finance for jiten shreshtha

Question #117930
perform sensitivity analysis using PW Method over a range of (+ or -) 20% in
i. initial investment. ii. net annual revenue
iii. salvage value iv. useful life:

Initial investment (Rs) = 200,000
Annual revenue (Rs) =50,000
Annual expenses (Rs) =5,000
Salvage values (Rs) =25,000
Useful life =10 yrs
MARR =12% Per year
Draw also the sensitivity graph.
1
Expert's answer
2020-05-27T10:11:08-0400

i)

s-sensitivity

1% changes Initial investment gives changes of NPV on 46.35%

ii)

iii)

iv)


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