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Sensitivity analysis

Sensitivity analysis

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Published by Muddasir Anita
Sensitivity analysis
Sensitivity analysis

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Categories:Types, School Work
Published by: Muddasir Anita on Apr 21, 2013
Copyright:Attribution Non-commercial

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07/24/2014

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Md. MuddasirID: 111-103-018Date: 20-04-20131
Sensitivity Analysis:
2008 2009 2010 2011 2012
Initial investment
Cost of new machine -9500000Installation cost -500000Increase NWC -4000000
Initial investment-14000000I. operating cash flow
Sales revenue 30000000 30000000 30000000 30000000variable cost 60% of sales-18000000-18000000-18000000-18000000Fixed cost -5000000 -5000000 -5000000 -5000000Depreciation of new machine -2075000 -2075000 -2075000 -2075000Earning before tax 4925000 4925000 4925000 4925000tax @40% -1970000 -1970000 -1970000 -1970000earning after tax 2955000 2955000 2955000 2955000Depreciation of new machine 2075000 2075000 2075000 2075000
I. operating cash flow 5030000 5030000 5030000 5030000Terminal cash flow
Return of NWC 4000000New salvage value 1880000
Terminal cash flow 10910000NPV
3722450
Deviation @% NPV NPV NPV
Negative % unit soldVariablecostR.R.returnBase level 3722450 3722450 37224505% 2694658 2180761 342100010% 1666865 639073 312760015% -1108173 -902614 2841971

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