Briefly outline the basis of your analysis i.e. what you have done in part a) and explain the meaning of the terms used such as net cash flow, discount factors, present values and net present values and why you have done this i.e. refer to the brief.

Methodology

Briefly outline the basis of your analysis i.e. what you have done in part a) and explain the meaning of the terms used such as net cash flow, discount factors, present values and net present values and why you have done this i.e. refer to the brief.

Initial Conclusion

Using the net present value, along with the cash flow, decide whether or not the development is financially worthwhile and explain why/why not.

Sensitivity Analysis

Identify at least four key factors from the cash flow that you think influence your decision above. Make reasonable changes to the values of these factors and determine how these changes affect your decision above.

Determine the value that each key factor would have to take in order to reverse the decision above and comment on its likelihood.