You have come up with the following estimates of project cash flows: The cash flows are perpetuities and the cost of capital is 8%. What does a sensitivity analysis of NPV (without taxes) show?
A) 25, +232.50, +440
B) -100, +500, +800
C) -90, -55, -20
D) None of the above

Question

You have come up with the following estimates of project cash flows:  The cash flows are perpetuities and the cost of capital is 8%. What does a sensitivity analysis of NPV (without taxes) show?
A) 25, +232.50, +440 
B) -100, +500, +800 
C) -90, -55, -20 
D) None of the above

Quizplus · Accepted Answer

The Answer of You have come up with the following estimates of project cash flows:  The cash flows are perpetuities and the cost of capital is 8%. What does a sensitivity analysis of NPV (without taxes) show?
A) 25, +232.50, +440 
B) -100, +500, +800 
C) -90, -55, -20 
D) None of the above

You Have Come Up with the Following Estimates of Project