Posted: September 17th, 2017

How to Perform a sensitivity analysis

Assignment Requirements.

1.Calculate the current weighted average cost of capital for CWC.

2.Calculate the appropriate discount rate for the healthy bottled water project.

3.Perform a sensitivity analysis for sales price, variable costs, fixed costs, and unit sales at +/- 10%, 20%, and 30% from the base case.

4.Perform an analysis of the following two scenarios:

Best case: Selling 2,500,000 units at a price of $1.24 each, with variable production costs of $0.22 per unit.

Worst case: Selling 950,000 units at a price of $1.32 per unit, with variable production costs of $0.27 per unit.

Explain if the firm should undertake the healthy bottled water project.

Do you want your assignment written by the best essay experts? Order now, for an amazing discount.