The sensitivity of two parameters (P and n) for one project is evaluated by graphing the AW
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The sensitivity of two parameters (P and n) for one project is evaluated by graphing the AW values versus percentage variation from the most likely estimates. The curve for n has a slope very close to zero, while the P curve has a significant negative slope. One good conclusion from the graph is that:
a. both PW and AW values are more sensitive to variations in P than n.
b. the project should be rejected, since AW values vary with P and n.
c. a better estimate of P needs to be made.
d. theRORis equally sensitive for both parameters.
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Related Book For
Basics Of Engineering Economy
ISBN: 9780073376356
2nd Edition
Authors: Leland T. Blank, Anthony Tarquin
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