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Yeah I defo didn’t get any marks for what I have done then ha. Hopefully I have scraped some marks for theory
We talking about the sensitivity??
The government surplus for npv I put at the end of the cashflow as it was tax exemptI took my capm and multiplied them by the market value of equity for the cost of equity in $. I did a wacc also just for the sake of it as I got a bit confused but came back to it and fixed it. Sensitivity analysis is took the npv over the contribution and got 10.28 or something around that. Section b wasn’t great for me.
Can anyone remember the npv for the project in sections c question a?I thought it went OK but now I’m second guessing everything. Sensitivity analysis and risk /return theory I think I wrote a lot for little marks. Also last question in section c about cost of equity and project specific cost of equity my percentages capm were 18% and 11% respectively. Anyone else? I’m convinced I have failed this.
