1)
Another method that could have been used would be sensitivity analysis that could tell how much the profitability of the project would change for a given change of variables. For example, in this case, the sensitivity of the company’s profits to the exchange rate could be used since the exchange rate is important as already outlined in the preceding section. However this method also has disadvantages. The first one is the this method would only use the profits of the company as a measure of viability of the project while there are other things to consider as well such as initial investments and so on. Secondly, this would just be an accounting analysis since profits are merely an accounting measure and the real indicator for any project must be the cash flows.
2)
The first factor that is important for the analysis of profitability is the exchange rate. The contract explicitly states that the product will be priced in dollars. This is odd as the company is UK based and it conducts its business in pounds (John 2001, 326). Moreover, all the costs that the company will go through, both operational and financial will both be pounds based and this includes an added measure of risk t the company as it will affectively leverage it operationally in case of an exchange rate change (White 2006, 127). An increase in the exchange rate in favor of the dollar will result in a more than proportional increase in the profit of the company as the other costs will remain fixed while the revenue grows. On the other hand, a decrease in the exchange rate will decrease profits by a more than proportional amount to the same reason. Hence the denomination of the price in dollars adds a measure of risk to the company’s operations. A sensitivity analysis in this case would help as it would tell how much the profit of the company would change as a result of the change in exchange rate.
1。
另一种方法，可以将灵敏度分析，可以看出项目的盈利能力，多少会改变一个给定的变量的变化。例如，在这种情况下，该公司的利润对汇率的敏感性可能是由于汇率是很重要的，已在上一节中列出的应用。但是这种方法也有弊端。第一个是这种方法只会使用公司的利润来衡量项目的可行性，同时还有其他的事情要考虑诸如初始投资等。其次，这只是一个会计分析由于利润只是会计计量和任何项目的真正指标必须是现金流。
2。
对盈利能力的分析是最重要的因素是汇率。合同明确规定，该产品将以美元定价。这是奇怪的公司是英国和它进行其业务在磅（约翰2001，326）。此外，所有公司将通过成本，运营和财务都将英镑和基于这包括额外的风险度量的T公司将有效的利用它在一个汇率的变化情况（2006白色，127）。对美元有利的汇率的增加将导致在一个以上的公司的利润比例增加的成本将保持固定，而收入增长。另一方面，在交换率的下降将减少利润的一个以上的比例达到同样的原因。因此，在美元的价格增加了一个衡量风险命名的公司经营。在这种情况下，灵敏度分析，将有助于它会告诉公司的利润有多少会因汇率变化。
