sensitivity example 2

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A friend of yours can invest in a multiyear project. It costs $14000. Annual cash inflows are estimated to
be $5000 per year for six years. But it could vary between $2500 and $ 7000. The cost of capital (interest
rate to borrow) is 11% but it can vary from 5% to 20%.
Build a tornado diagram
Construct a one way sensitivity graph for cash inflow and rate of interest on the profit
Construct a two way sensitivity chart for the baseline profit.
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