what is the sensitivity of npv to the variable cost price 1

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  • 1)What is the sensitivity of NPV to first year variable cost per unit?
  • 2)What is the sensitivity of NPV to first year OEM Price?
  • 3)What can you say about the sensitivity of NPV to variable cost and price? i.e. which input is more sensitive and what does it imply to the company in terms of risk management? (3-5 sentences)

DNPV/Dvc=

Explain in 1 sentence what the sensitivity of NPV to first year variable cost means:

DNPV/DP=

Explain in 1 sentence what the sensitivity of NPV to first year variable cost means:

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