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Question 5.9: Perform a sensitivity analysis for capital spending deviatio...

Perform a sensitivity analysis for capital spending deviations from the expected capital investment for the problem in Example 7 in this chapter. For that project, the most probable estimates are:

ROI 27.50%
Project life 10 years
Capital cash flow $7M, Year–2
$25M, Year–1
$8M, Year 0
Capital estimate accuracy As high as $60M (+50%)
As low as $32M (–20%)
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