Sensitivity Analysis and Scenario Analysis Assignment

Please, read this paragraph these simple and mutually exclusive projects: to answer questions 11, 12 and 13: R+C Inc, is goin 10. Sensitivity analysis and Scenario analysis are methods that:

a) Deal with risk that comes from the project cash flows.

b) Deal with risk that comes from the project opportunity cost of capital.

c) Plot the NPV as a function of the discount rate

d) Study the minimum number of units the company has to sell to get positive NPV.

Please, read this paragraph these simple and mutually exclusive projects: to answer questions 11, 12 and 13: R+C Inc, is going to invest in one of Project B Project A NPV (at discount rate 0%)- NPV (at discount rate 20% ) – 594.37 IRR- 41.04 % 1,480 NPV (at discount rate 0%) NPV (at discount rate 20% ) – 800.93 IRR- 78.22% 1,800 Fisher’s rate (crossover rate)- 9.39 %

11. In case the minimum required return for these investments is 15% , what is the best project for R+C?

a) Project A.

b) Project B

c) Both projects are equally good for R+C

d) We do not have enough information to answer this question.

12. In case the opportunity cost of capital for these investments is 7%, what is the best project for R+C?

a) Project A

b) Project B

c) Both projects are equally good for R+C.

d) We do not have enough information to answer this question. 13. A Fisher’s rate (crossover rate) of 9.39% represents:

a) The discount rate that makes NPVA=NPVB

b) The IRR of the incremental investment B-A

c) The discount rate that makes projects A and B equally valuable for R+A

d) All of the above. Get Finance homework help today

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Always use Grammarly Premium.
Customer 462795, April 3rd, 2022
Business and administrative studies
This was done very well. Thank you!
Customer 458435, September 10th, 2022
Accounting
Thank you!
Customer 454299, April 21st, 2020
ASCI 491: Operational Application in Aeronautics
Good focus.
Customer 457731, April 3rd, 2022
community health
Thank you!!!
Customer 463301, September 1st, 2022
Leadership Studies
Thanks! Looks Great!
Customer 453375, December 4th, 2021
Education
Thank you
Customer 463515, October 19th, 2022
Psychology
Excellent.
Customer 463097, June 23rd, 2022
Social Work and Human Services
Good work.
Customer 460073, June 23rd, 2022
Education
Excellent.
Customer 462865, April 18th, 2022
Military
excellent
Customer 456821, September 1st, 2022
Nursing
Great Job! Thank you for your help :)
Customer 454007, May 24th, 2020
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat