Calculate the project safety margin and switching values

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A project involves the following costs among other cost items. Salaries for staff and raw materials. Revenue estimation has shown that at the expectedprice of TZS 20000 per ton of output, initial NPV is TZS 20 million. Further, if the salaries for staff are increased by 10%, a project NPV falls to TZS 18 million, and if the cost of raw materials is increased by 5%, the project NPV falls to TZS 14 million. Calculate the project safety margin and switching values. Comment on your results.

Reference no: EM131244248

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Calculate the project safety margin and switching values : A project involves the following costs among other cost items. Salaries for staff and raw materials. Revenue estimation has shown that at the expectedprice of TZS 20000 per ton of output, initial NPV is TZS 20 million. Calculate the project safety ma..

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