Problem 9.27 – NPV Analysis and Sensitivity to Projections
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Calculate the best-case, worst-case, and base-case NPV for a new product launch, considering project costs, sales projections, price, variable and fixed costs, required return, and tax rate. Assess the sensitivity of the base-case NPV to changes in fixed costs.
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