What is the project’s sensitivity to staff costs?


A project has a net present value of $2 million.

Total cash outflows of this project have a present value of $14 million, which includes staff costs of $10 million.

What is the project’s sensitivity to staff costs?
A . 20%
B . 63%
C . 71%
D . 14%

Answer: A

Leave a Reply

Your email address will not be published.