Use the Information for the Question(s)below

question 90

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 would like to know how sensitive the project's NPV is to changes in the discount rate.How much can the discount rate vary before the NPV reaches zero?

---

Definitions:

Teratogen

An environmental agent, such as a drug, chemical, virus, or other factor that produces a birth defect.

Environmental Factor

Any external element that can influence the development or outcome of a process or the health of an organism.

Birth Defects

Abnormalities in physical or mental structure or function that are present at birth, affecting body development or function.

Embryonic Stage

The period from two to eight weeks following fertilization during which significant growth occurs in the major organs and body systems.