Homework Questions? Ask a Tutor for Answers ASAP
Welcome to Just Answer
I did this question in past
Have one more question.
What is the profitability index of the project?
Profitability Index = PV of future cash flows/Initial Investment =1.557
In excel file it is calculated. Please check row-71.
I need the link to be reopened. I could not access the files from my computer, due to some software issue. Was only able to see it from my iPhone. Need links upload to access it from work.
There is one mistake.
5. Perform a sensitivity analysis for the case of the price = $510.6. Perform a sensitivity analysis whereby the increase unit sold is 100 units per year.
You calculated for 1,000 units not 100 units
When price is increased to $510, NPV falls from $18,096,790.85 to $16,214,567.