Sensitivity analysis, Explanation of what is meant by the

Sensitivity analysis

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Reference no: EM134019820

Question

Explanation of what is meant by the term 'sensitivity analysis', using the spreadsheet to illustrate the numerical sensitivity of the investment in the new machine to a change in the selling price and, secondly, to a change in the discount rate (a second NPV using a discount rate of 15% should be used) and a commentary on your findings. Please also explain how exposure to these two risks could be mitigated.

Reference no: EM134019820

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