3. Shaheen Pharmaceuticals financial information is given below: Year 1 Investment Revenues Variable Costs Fixed Costs Depreciation Pretax profit Tax (34%) Net Profit Years 2-5 Rs.7.000 (3.000) (1.800) (400) Rs.1,800 (612) Rs.1.188 Cash Flow -$1,600 Rs.1.588 quired: Conduct the sensitivity analysis, if the projected revenue of Shaheen Pharmaceutical falls down from 7000 5000 D
3. Shaheen Pharmaceuticals financial information is given below: Year 1 Investment Revenues Variable Costs Fixed Costs Depreciation Pretax profit Tax (34%) Net Profit Years 2-5 Rs.7.000 (3.000) (1.800) (400) Rs.1,800 (612) Rs.1.188 Cash Flow -$1,600 Rs.1.588 quired: Conduct the sensitivity analysis, if the projected revenue of Shaheen Pharmaceutical falls down from 7000 5000 D
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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Transcribed Image Text:Q#3. Shaheen Pharmaceuticals financial information is given below.
Year 1
Investment
Revenues
Variable Costs
Fixed Costs
Depreciation
Pretax profit
Tax (34%)
Net Profit
Years 2-5
Rs.7,000
(3.000)
(1,800)
(400)
Rs. 1,800
(612)
Rs.1.188
Cash Flow
-$1,600
Rs.1.588
Required: Conduct the sensitivity analysis, if the projected revenue of Shaheen Pharmaceutical falls down from
Rs. 7000 to Rs. 6000. Rate of return is 10%.
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