You Have Come Up with the Following Estimates of Project

question 18

Multiple Choice

You have come up with the following estimates of project cash flows: The cash flows are perpetuities and the cost of capital is 8%. What does a sensitivity analysis of NPV (without taxes) show?

• A) 25, +232.50, +440
• B) -100, +500, +800
• C) -90, -55, -20
• D) None of the above