16. An alternative that has an initial cost of A TL, annual revenues of B TL, annual costs of C TL is being considered. The useful life of the alternative is determined as n years and the salvage value at the end of n years is expected to be D TL. MARR is E % per year. a) (2 points) Determine whether the alternative is an attractive one or not? b) (3 points) The decision maker is not certain about the expectations for annual revenues. So, calculate the breakeven point for the annual revenues. c) (3 points) The decision maker is not certain about the annual expenses. Calculate the breakeven point for the annual expenses. d) (2 points) Calculate the sensitivity of the investment decision for the forecast of the annual expenses (in terms of percentages) e) (2 points) Calculate the sensitivity of the investment decision for the forecast of annual revenues in terms of percentages) Q16 B D E n 129100 49000 11000 8064 9 8 16. An alternative that has an initial cost of A TL, annual revenues of B TL, annual costs of C TL is being considered. The useful life of the alternative is determined as n years and the salvage value at the end of n years is expected to be D TL. MARR is E % per year. a) (2 points) Determine whether the alternative is an attractive one or not? b) (3 points) The decision maker is not certain about the expectations for annual revenues. So, calculate the breakeven point for the annual revenues. c) (3 points) The decision maker is not certain about the annual expenses. Calculate the breakeven point for the annual expenses. d) (2 points) Calculate the sensitivity of the investment decision for the forecast of the annual expenses (in terms of percentages) e) (2 points) Calculate the sensitivity of the investment decision for the forecast of annual revenues in terms of percentages) Q16 B D E n 129100 49000 11000 8064 9 8