Question: The example below calculates the NPV and IRR for an investment.
a. Create a one-dimensional data table showing the sensitivity of the NPV and IRR to the year-1 cash flow (currently $10,000). Use a range of $9,000 - $12,000 in increments of $500.
b. Create a two-dimension data table showing the sensitivity of NPV to the year-1 cash flow and to the discount rate. Use the same range for the cash flow as above and use discount rates from 8% to 20%, with increments of 2%.
