A new equipment will cost 200,000 to install, 5,000 annually maintenance, and have a life of...

A new equipment will cost 200,000 to install, 5,000 annually maintenance, and have a life of 5 years. The revenue generated by this equipment is estimated to be 60,000 per year. The MARR is 10% per year compounded monthly. Examine the sensitivity of present worth to variation in individual parameters estimates, while others remain constant

1.Sensitivity to installation cost variation: 150,000 to 250,000

2.Sensitivity to revenue variation: 45,000 to 75,000

3.Sensitivity to life variation: 4 year to 7 year

4.Plot the above result on graphs (each analysis should have its own graph).

Microsoft Excel

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jeff jeffy answered 1 year ago

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