1. [30] For the following project, conduct a sensitivity analysis with the following variables: Capital Cost (+ and 15%), Revenue (+ and 20%), Expenses (+ and 10%), Project Life (+ and - two years), and Salvage Value (+ and 20%). Report your results regarding NPV values using both a tornado diagram and a spider plot.

Investment: 130,000

Revenue/Savings: 38,000

Incremental Expense/Cost: 6,000

Salvage Value: 30,000

Project Life: 12 years

MACRS Schedule: 7 years

Tax Rate: 23%

MARR: 15%

Inflation: 3%

Bonus Depreciation: 20%

4. [10] Profit in thousands from a project is determined by the equation Profit = 2X + 3Y where X and Y are random variables that can be modeled by a normal distribution. For this problem x is 20, y is 30, x is 2 and y is 3. Find the mean and standard deviation of Profit in thousands.