Q#3. Shaheen Pharmaceuticals financial information is given below.Year 1InvestmentRevenuesVariable CostsFixed CostsDepreciationPretax profitTax (34%)Net ProfitYears 2-5Rs.7,000(3.000)(1,800)(400)Rs. 1,800(612)Rs.1.188Cash Flow-$1,600Rs.1.588Required: Conduct the sensitivity analysis, if the projected revenue of Shaheen Pharmaceutical falls down fromRs. 7000 to Rs. 6000. Rate of return is 10%.

In capital budgeting, sensitivity analysis is a tool used to assess the potential impact of changes…

Answered: 3. Shaheen Pharmaceuticals financial…

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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