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Part (a) Please calculate the sensitivity of the Net Present Value calculation to changes in the following: - Selling price per unit - Cost of materials - Labour \& overheads Part (b) Please complete the table which shows the sensitivity of each of the variables above and rank them (most sensitive =1, least sensitive =3 ). Please ensure that you use formula wherever appropriate, so that the answers automatically update if any of the information changes Company I Investment opportunity: Net Present Value calculation Revenue Cost of materials Packaging costs Labour \& overheads Net trading cash flows Corporation tax Year 0 Equipment 1,000,000 Disposal proceeds Capital allowances Net cash flows \begin{tabular}{rrrrr} & 45,000 & 36,900 & 136,850 \\ \hline1,000,000 & 525,000 & 348,750 & 413,150 & 46,850 \end{tabular} Cost of capital 8.0% Net present value 147,516 Part (a) Please calculate the sensitivity of the NPV calculation to changes in the following variables: Cost of capital Present value of cash flows affected Original NPV Sensitivity \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} Labour \& overheads Cash flows affected (before tax) Corporation tax Net cash flows Cost of capital Present value of cash flows affected Original NPV Part (b) Please complete the table below and rank the variable (most sensitive =1, least sensitive =3 )

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