Question 7.E.X.4.1: Application of sensitivity analysis Swift has a cost of ca...
Application of sensitivity analysis
Swift has a cost of capital of 12 per cent and plans to invest £7m in a machine with a life of four years. The units produced will have a selling price of £9.20 each and will cost £6 each to make. It is expected that 800,000 units will be sold each year. By how much will each variable have to change to make the NPV zero? What are the key variables for the project?
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