Principles of Corporate Finance

Sensitivity Analysis

Net Cash Flow - 15 3

Operating cash flow 3.0

Profit after tax 1.5

.Taxes @ 50% 1.5

Pretax profit 3

Depreciation 1.5

Fixed Costs 3

Variable Costs 30

Sales 37.5

Investment - 15

Year 0 Years 1 - 10

Example - continued

NPV= 3.43 billion Yen