Problem 11.17 – Sensitivity Analysis
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Find the sensitivity of the operating cash flow based on changes in quantity.
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Find the sensitivity of the operating cash flow based on changes in quantity.
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Find upper and lower bounds for projections, base-case NPV, best-case and worst-case scenarios, the sensitivity of base-case NPV to changes in fixed costs, the cash break-even level, the accounting break-even level, and the degree of operating leverage.
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Figure out the payback period, NPV, and IRR.
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Find the number of miles and what price per gallon is needed to make buying a hybrid worth it.
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Find the cash flow per plane and the number of planes to sell for the different scenarios.
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Find the OCF, NPV, Worst-case NPV, and Best-case NPV.
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Which one of the following factors, when decreased, will result in an increase in the accounting break-even quantity assuming straight-line depreciation is used and taxes are ignored?
Which values will be zero at the accounting break-even level of output?
When assigning the lowest anticipated sales price and the highest anticipated costs to a project, what condition is being analyzed?
Which change among those Andrea considers for a project with a projected zero NPV is most likely to yield a positive NPV independently?