(a(i))[1]
Calculate the total revenue for each year in the original plan.
(a(ii))[1]
Calculate the total revenue for each year under the revised plan.
(b(i))[2]
Calculate the total variable cost for each year in the original plan.
(b(ii))[2]
Calculate the total variable cost for each year under the revised plan.
(c)[8]
Calculate the rise in NPV that would result if the revised plan were chosen instead of the original.
(d)[3]
Calculate the total number of tickets Samir would need to sell in year 1 with the revised plan so that the rise in revenue matched the additional fixed costs.
(e)[2]
Assess any worries Samir may have about the revised plan.
(f)[3]
Advise Samir whether he ought to implement the revised plan or not. Justify your answer.
(g)[3]
Explain how sensitivity analysis is useful in investment appraisal.