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12-9. Suppose the following cash flow represents the base case for a poten- tial investment project. Conduct a sensitivity analysis. MARR 0 = 10% Revenues

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12-9. Suppose the following cash flow represents the base case for a poten- tial investment project. Conduct a sensitivity analysis. MARR 0 = 10% Revenues - $3,000 per year 0 1 2 3 4. 5 6 7 Operating Cost = $1,000 per year $900 Variable -30% -20% -10% 0 +10% +20% +30% Revenues $3,000/$4,563 MARR 10%/54,563 Operating $1,000/$4,563 Costs a. Complete the above table for the appropriate changes in vari- able values. Fill in the table with the new revenues, MARR, and operating costs based on the variable changes. b. Find the net present worth for all the missing blocks in the table below. Variable -30% -20% -10% 0 +10% +20% +30% Revenues $3,000/$4,563 MARR 10%/54,563 Operating $1,000/$4,563 Costs c. Plot the NPV for all three variables from the table in (b) (reve- nue, MARR, and operating costs). Be sure to correctly label each line appropriately with a legend. d. Which input variable shows the most sensitivity to NPV? Why did you choose this variable

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