Upload - The cost of capital – this is calculated as 5.70 now and we change this to see the effect.

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
In sensitivity analysis we change one of the variables and see the effect on that on the present value of cash flows. In our case we are using 2 variable that can be changes The inflation rate – currently given as 3% and we vary this rate to see the effect.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The cost of capital – this is calculated as 5.70% now and we change this to see the effect....
View Full Document

This note was uploaded on 07/11/2011 for the course ECO 101 taught by Professor Anitakapila during the Spring '11 term at Anna Maria.

Ask a homework question - tutors are online