Plot the results on a graph similar to Figure 183 and comment on the relative sensitivity of
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Sensitivity analysis graph of percent variation from the most likely estimate
A new online patient diagnostics system for surgeons will cost $200,000 to install, cost $5000 annually to maintain and will have an expected life of 5 years. The added revenue is estimated to be $60,000 per year, and the MARR is 10% per year. Examine the sensitivity of present worth to variation in selected parameter estimates, while others remainconstant.
MARRMinimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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