Use the Information for the Question(s)below

question 29

Essay

Use the information for the question(s)below.
Epiphany Industries is considering a new capital budgeting project that will last for three years.Epiphany plans on using a cost of capital of 12% to evaluate this project.Based on extensive research,it has prepared the following incremental cash flow projections:
-Epiphany is worried about the reliability of the sales forecast.How sensitive is the project's NPV to a 10% change in sales?

---

Definitions:

Consequentialism

An ethical theory that judges whether something is right or wrong based on the consequences of the action, rather than the action itself.

Utilitarianism

An ethical theory that suggests the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Ethical Relativism

The theory that moral principles are not universal but instead vary depending on culture, individual perspective, or societal norms.

Objective Standards

Criteria established by facts or law to make judgments based on unbiased benchmarks or guidelines rather than personal feelings or opinions.