Q
I need to conduct a sensitivity analysis, based on the following "what if" scenarios: 1. What if funds are blocked? How does that affect the parent company? 2. From the perspective of the subsidiary, what if the subsidiary provided the funds? 3. How does the source of capital affect the subsidiary and the parent company? 4. What sources of capital would minimize the cost of capital to the subsidiary? What happens if the country you have chosen has provided incentives to invest? Now that your company has started to become profitable, the country is takind the incentives back. How do you determine the residual value at the end of the project life?