Question

Base case DSCR is 1.40. On 10% fall in sales, DSCR falls to 1.05. On 10% increase in cost, DSCR becomes 0.98. What is the correct appraisal inference?

A Project is robust
B Project is moderately safe
C Project is highly sensitive and risky
D Project is over-financed
E Project needs only minor correction
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