ii. iii. iv. Sensitivity analysis of initial investment. Sensitivity analysis of project life Sensitivity analysis of annual income. Sensitivity analysis of salvage value.
ii. iii. iv. Sensitivity analysis of initial investment. Sensitivity analysis of project life Sensitivity analysis of annual income. Sensitivity analysis of salvage value.
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:You have been assigned to evaluate the sensitivity of an engineering project. Its
estimated initial investment is Tk15 million at the present time, where an
expected annual income of Tk3,600,000 plus thousands of the last two digits of
your student ID (for instance, if your ID is 180021020, add 20,000) for five years
(starting from the first year). The salvage value at the end would be Tk7.2
million. Evaluate the sensitivity of the project when RoR range is 15% to 30%
increase and decrease in initial investment, annual income, project life, and
salvage value. Appraise the manager between 15% and 30% increase and 15%
and 30% decrease for each of the following):
Sensitivity analysis of initial investment.
Sensitivity analysis of project lifes
Sensitivity analysis of annual income.
Sensitivity analysis of salvage value.
ii.
111.
iv.
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