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3. (20 points) You are considering replacing a pressure sensor for a low-pressure steam line at your food processing plant. The costs for the new

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3. (20 points) You are considering replacing a pressure sensor for a low-pressure steam line at your food processing plant. The costs for the new sensor are shown below. Your company's MARR is 8% . Initial Cost $12,650 Maintenance Cost $1,200/year Salvage Value $2,000 Life 4 years . . As these are estimates of future cash flows, your boss asks you to perform a sensitivity analysis describing the change in AW as you vary the estimates as follows: . . Salvage Value [1,000; 2,500] $ Life [3; 6) years a. Develop a tornado diagram showing the sensitivity of AW to changes in the estimated salvage value and life of the pressure sensor. b. Develop a spider plot showing the results of a sensitivity analysis on the Salvage Value and Life input parameters. Your two curves must each contain at least 4 (x, y) points. c. Why should a project manager closely monitor progress of tasks in the critical path? 3. (20 points) You are considering replacing a pressure sensor for a low-pressure steam line at your food processing plant. The costs for the new sensor are shown below. Your company's MARR is 8% . Initial Cost $12,650 Maintenance Cost $1,200/year Salvage Value $2,000 Life 4 years . . As these are estimates of future cash flows, your boss asks you to perform a sensitivity analysis describing the change in AW as you vary the estimates as follows: . . Salvage Value [1,000; 2,500] $ Life [3; 6) years a. Develop a tornado diagram showing the sensitivity of AW to changes in the estimated salvage value and life of the pressure sensor. b. Develop a spider plot showing the results of a sensitivity analysis on the Salvage Value and Life input parameters. Your two curves must each contain at least 4 (x, y) points. c. Why should a project manager closely monitor progress of tasks in the critical path

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