Inflation Rate 0 00 Discount Rate 0 15 Project Development Capital Costs In Year

Suppose the cost of the raw material fluctuates with international market conditions.Your firm is concerned about increases in the cost of the raw material. Vary the cost ofraw material from $2 to $7 per unit (in increments of $1 per unit), with all other parametersremaining the same as in the base case, and plot a graph showing IRR versus raw materialcost per unit.

 

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