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Lunna [17]
2 years ago
11

Sensitivity analysis determines the: Multiple Choice net present value range that can be realized from a proposed project. degre

e to which a project relies on its initial costs. ideal ratio of variable costs to fixed costs for profit maximization. range of possible outcomes given that most variables are reliable only within a stated range. degree to which the net present value reacts to changes in a single variable.
Business
1 answer:
BaLLatris [955]2 years ago
3 0

Answer:

It determines the degree to which the net present value reacts to changes in a single variable

Explanation:

Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.

It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.

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Explanation:

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Answer:

$1.0725 Million

Explanation:

So now

Net Present Value =  Annuity value of the even cash inflow - Investment

Here

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Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital  

= Value of Debt / (V of debt + V of equity) * After tax cost of debt      PLUS

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3 years ago
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sergij07 [2.7K]

Answer:

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