If NewProduct sales are 5 per cent below the expected levels, cash flow per unit falls by 33.3 per cent. What will be the NPV?
A) - £114,500
B) £14,500
C) - £154,500
D) £145,000

Question

Quizplus · Accepted Answer

The NPV is negative at - £114,500, indicating that the project is not financially viable when sales are 5% below expectations and cash flow per unit decreases by 33.3%.

If NewProduct Sales Are 5 Per Cent Below the Expected