Construct a sensitivity analysis of the outcome in Problem 5.2, varying the IRR of System E from

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Construct a sensitivity analysis of the outcome in Problem 5.2, varying the IRR of System E from 5% to 10% in increments of 0.5%. How do you interpret the results and what does the outcome suggest in terms of selecting System D over System E?

Data from problem 5.2

Action Diagnostics is considering one of the following centrifuge systems:

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Financial Decision Making For Engineers

ISBN: 9780300192186

1st Edition

Authors: Colin K. Drummond

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Question Posted: Apr 21, 2024 05:00 AM

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Construct a sensitivity analysis of the outcome in Problem 5.2, varying the IRR of System E from

Question:

System D System E Cost $16,000 $24,000 Savings/yr $1,500 $2,200 IRR 6% 8%

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Financial Decision Making For Engineers

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