Sensitivity to life variation: 4 years to 7 years (−20% to +40%).
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 remain constant.