What we see here is that, given our ranges, the estimated NPV of this project is more sensitive to changes in projected unit sales than it is to changes in projected fixed costs. In fact, under the worst case for fixed costs, the NPV is still positive.

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

IV. Capital Budgeting

11. Project Analysis and Evaluation

© The McGraw-Hill Companies, 2002

CHAPTER 11 Project Analysis and Evaluation

Net present value ($000)

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