In the case of investment opportunities, the initial investment is estimated at $150,000 the project life is 5 years and the annual costs are $72,600 and the prices and sales volume are as in the following table: Find the sensitivity analysis for the simple rate of return in the case of a 5% decrease in revenues
In the case of investment opportunities, the initial investment is estimated at $150,000 the project life is 5 years and the annual costs are $72,600 and the prices and sales volume are as in the following table: Find the sensitivity analysis for the simple rate of return in the case of a 5% decrease in revenues
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In the case of investment opportunities, the initial investment is estimated at $150,000 the project life is 5 years and the annual costs are $72,600 and the prices and sales volume are as in the following table:
Find the sensitivity analysis for the simple rate of return in the case of a 5% decrease in revenues.
Transcribed Image Text:annual |unit price sales
costs
in dollars yolume
year
72600
90
1100
1
72600
90
1150
72600
90
1050
3
72600
90
1050
4
72600
90
1100
5
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