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.
Find the sensitivity of the operating cash flow based on changes in quantity.
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.
Figure out the payback period, NPV, and IRR.
Find the number of miles and what price per gallon is needed to make buying a hybrid worth it.
Find the cash flow per plane and the number of planes to sell for the different scenarios.
Find the OCF, NPV, Worst-case NPV, and Best-case NPV.