Q1) The project produces a number of units needed for a power plant project for purposing of routine maintenance as shown in the following table: Sales Quantity 710 Thousands units Price for Sales...


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Q1) The project produces a number of units needed for a power plant project for purposing of<br>routine maintenance as shown in the following table:<br>Sales Quantity<br>710 Thousands units<br>Price for Sales Quantity<br>Cost for Quantity<br>Project life span (virtual)<br>investment costs<br>11$<br>9.5 $<br>7 years<br>1330 Thousands $<br>1<br>3<br>4<br>Note that (i= 9 %) for whole project life.<br>Adopting of sensitive analysis to answer the following:<br>1) The test of the project net present value under the following situations: -<br>A) current situation,<br>B) under the economic changes: Reduced selling price per unit (10%). & (15%)increase in sales<br>& 5% decrease in the cost of the unit produced.<br>C) Draw a graphically for illustrating the two cases and explaining it from an economic point of<br>view.<br>

Extracted text: Q1) The project produces a number of units needed for a power plant project for purposing of routine maintenance as shown in the following table: Sales Quantity 710 Thousands units Price for Sales Quantity Cost for Quantity Project life span (virtual) investment costs 11$ 9.5 $ 7 years 1330 Thousands $ 1 3 4 Note that (i= 9 %) for whole project life. Adopting of sensitive analysis to answer the following: 1) The test of the project net present value under the following situations: - A) current situation, B) under the economic changes: Reduced selling price per unit (10%). & (15%)increase in sales & 5% decrease in the cost of the unit produced. C) Draw a graphically for illustrating the two cases and explaining it from an economic point of view.

Jun 04, 2022
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