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Hello, kindly help me with this Open tuition mock question:
*Again, please note: my browser froze and I couldn’t see the full solution when I submitted/finished.*
A project requires an investment of $25,000 and is expected to generate a cash inflow of $8000 a year for 5 years (with the first receipt in one years time). The cost of capital is 10%.
What is the sensitivity to change of the cash inflow each year?
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