8-9 Sensitivity analysis xample-continued NPy Calculations for Pessimistic Investment scenario Year 0 Years 1-12 Investment 6,200 Sales 16,000 Variable costs 13,000 Fixed costs 2,000 Depreciation 450 Pretax profit 550 Taxes 400 220 Profit after taⅹ 330 Operating cash flow 780 Net cash Flow 6,200 780 NP=(S121) Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 8- 9 Irwin/McGraw-Hill Sensitivity Analysis Example - continued NPV Calculations for Pessimistic Investment Scenario Year 0 Years 1 - 12 Investment - 6,200 Sales 16,000 Variable Costs 13,000 Fixed Costs 2,000 Depreciation 450 Pretax profit 550 . Taxes @ 40% 220 Profit after tax 330 Operating cash flow 780 Net Cash Flow - 6,200 780 NPV= ($121)