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how to calculate the sensitivity of net annual operating cash flows
for reference question name is Hartland plc- Topics: 0
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hello
sensitive analysis is measure how it is affect to NPV when one or more variable change. ex: if selling price change from 23$ to 22$ how it affect to cash flow and NPV. or other variable such fixed cost change from 400,000$ per year to 500,000$ per year. how it is affect to cash flow and NPV. in order to decide that the project propose accept or not.
sometime depend on risk and uncertainty of information.
hope to understand.
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