Determine breakeven percentage change of initial investment

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Question 1: Do you think that project is economically attractive considering the data given? Explain your answer with your calculations.

Question 2: Determine the breakeven percentage change of initial investment.

Question 3: Analyze the sensitivity of the PW to changes in initial investment, annual revenue and market value.

Question 4: Using your finding in b, draw spiderplot (/sensitivity graph) in Excel. If you are not able to do it in Excel, hand drawing plots will be accepted as well. However, their accuracy is your responsibility.

Question 5: Identify the factor that PW is the most sensitive to the changes.

Question 6: Identify the decision reversal points in the spiderplot if they are included in your drawing for each factor considered.

Question 7: If initial investment increases by 5%, do you think that the project will be economically attractive anymore?

Reference no: EM132578312

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