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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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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